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World PR Report 2014, the most comprehensive study of the global PR industry created by the International Communications Consultancy (ICCO) and The Holmes Report, includes the 250 Top PR agencies Global Rankings and data on the latest trends and issues that these and other agencies are facing worldwide.
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WORLD PRREPORT2014Produced by the Holmes Report and the International Communications Consultancy Organisation
Capstone Hill Search is a specialist talent finder for the PR and MarComms industry; committed to solving your hiring needs no matter the size of your business. We work locally, nationally and globally to provide the best people for the best roles. We deliver outstanding service expertise and insights to both candidates and clients throughout the entire hiring process and beyond.
Proud Sponsors of the World PR Report. Supporting 11% worldwide growth through global in-house & consultancy talent sourcing
New York - London - Melbourne - Sydney
Contact: Jamie McLaughlinTel: +1 212 601 1932Email: [email protected] Web: www.capstonehillsearch.com
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Capstone-Hill-Search-Holmes-A4.pdf 1 02/09/2014 20:14
CONTENTS
04 Foreword David Gallagher and Francis Ingham
05 Global Rankings
18 Global Research 18 Trends and Attitudes24 Opportunities and Challenges37 Growth47 Talent51 Local Markets53 Methodology
Produced by the Holmes Report and ICCO.
The Holmes ReportPaul A. Holmes — CEOArun Sudhaman — Partner & Editor-in-ChiefGreg Drury — Partner & President, US OperationsAarti Shah — Associate Partner & Senior Editor
ICCODavid Gallagher — PresidentFrancis Ingham — Chief ExecutiveAnastasia Demidova — General Manager
Report Design — [email protected]
The Holmes ReportThe Holmes Group is dedicated to proving and improving the value of public relations, by providing insight, knowledge and recognition to public relations professionals. The Holmes Group was founded in 2000 by Paul Holmes ([email protected]), Editor-in-Chief and CEO, who has more than two decades of experience writing about and evaluating the public relations business and consulting with both public relations firms and their clients. The Holmes Group delivers against its mission by providing the most sophisticated reporting and analysis on public relations trends and issues.
www.holmesreport.com
ICCOThe International Communications Consultancy Organisation (ICCO) is the voice of public relations consultancies around the world. The ICCO membership comprises national trade associations in 29 countries across the globe in Europe, Africa, Asia, the Americas and Australia. Collectively, these associations represent over 1,700 PR firms.
www.iccopr.com
WORLD PRREPORT2014
WORLD PR REPORTFOREWORD
“ This World Report -a unique source of intelligence for agency heads around the world - should give us a feeling of pride and confidence...”
FOREWORD
This World Report describes an industry that continues to flourish in every part of the world. Across the globe, PR agencies are on the up - growing in revenue; optimistic about the future; profitable. And as general economic conditions grow more positive, the trends of the past few years seem set only to accelerate. PR weathered the economic storm better than many other industries, and now seems set fair to take advantage of the brighter times ahead.
David GallagherICCO President & CEO EMEA, Ketchum
Francis InghamICCO Chief Executive
WORLD PR REPORT 20134
A key driver of this is PR continuing to broaden its remit - to win work that once would have gone elsewhere. A large part of this is of course social media, but that is far from the being the entire picture. Marketers across the board are moving spend from other disciplines and towards PR - a trend that is highly positive for the industry.
Of course there are challenges, and of course not every region our country in the world can be its fastest growing. The talent gap is obvious. So too is the need finally to put evaluation and measurement at the heart of what agencies do. And in that regard, ICCO is taking concrete, substantial steps via its ongoing partnership with AMEC. Equally, we need to do more work to prove the direct financial costs and benefits of movements in corporate reputation, an area of vital importance to PR’s future, and yet one where we continue to perform less well than we could.
Overall though, this World Report - a unique source of intelligence for agency heads around the world - should give us a feeling of pride and confidence. Pride in being part of such a vibrant, dynamic industry. Confidence that PR’s best times are yet to come.
WORLD PR REPORT 2014 5
Growth was again powered by independent PR agencies, which were up 12.5% on 2013, according to the 2014 World Report, which is produced by the Holmes Report in conjunction with ICCO.
The first phase of the World Report ranks the 250 largest PR firms in the world, revealing a global PR industry that grew 11% in 2013, compared to 6% in 2012 and 8% in 2011.
Once again, publicly-held MNC firms lagged, with those owned by the major holding groups growing by 6% in 2013 to around $5.3bn. That figure still represents a considerable improvement on 2012, when the major public-owned MNC PR firms grew by just 3.3%.
Reported PR growth at the ‘big four’ holding groups — WPP, Omnicom, Interpublic and Publicis Groupe — was more modest, at around 4%. However, when accounting for all of the publicly-owned firms in the Global Rankings, including smaller and specialist agencies, reported growth was a much healthier 11%.
The market share of globally reported revenue—slightly more than $9.7 billion—held by the four giant holding companies, which was around 50 percent three years ago, holds steady at around 45 percent. The share of the overall global PR industry revenue—now estimated by The Holmes Report at close to $12.5 billion based on the vast number of smaller firms that do not provide revenue figures— remains well under 40 percent.
Also of note is that independent PR firm fee income has almost reached parity with the big four holding groups, with the former
reporting $4.5bn compared to the latter’s $4.7bn.
“Public relations agencies in general are beginning to experience the kindof growth we should expect to see in the current environment,” said Holmes Report publisher/CEO Paul Holmes. “The things that PR firms should be good at — authenticity, engagement, credibility, conversation — are all increasingly valuable in the digital age, and while it has taken some firms a few years to adapt and expand their service offerings, these numbers suggest that as a whole the industry is getting it right.”
“But once again we are seeing disappointing growth for many of theindustry’s flagship agencies — and particularly those owned by the largerholding companies,” added Holmes. “It’s not entirely clear why this should be. Perhaps they are restricted from expanding their offering out of a concern that will cannibalize sister agencies; perhaps their sheer size makes them less flexible or less nimble in times of rapid change; or perhaps holding company profit targets make it more difficult to make the necessary investments. Whatever the cause it is clear that they are losing market share to midsize and independent firms.”
This year’s Global Rankings also finds a welcome rebound in revenue per capita for those firms reporting both fee income and headcount to an average of around $155,000, compared to $142,000 last year, and ahead of the $151,000 reported in 2011. Based on its research, the Holmes Report estimates that the global PR agency industry employs more than 80,000 people, up from 75,000 last year.
GLOBAL PR INDUSTRY GROWTH SURGES TO 11% IN 2013
• Publicly-owned MNC firms up 6%
• Independent PR firms up 12.5% • PR agency industry worth
$12.5bn, employs more than 80,000 people
• Revenue per head rebounds to $155k
Public relations industry growth improved significantly to 11% in 2013, cracking the double-digit barrier for the first time since the global recession took hold in 2008.
GLOBAL RANKINGSEXECUTIVE SUMMARY
Arun Sudhaman Partner & Editor-in-ChiefThe Holmes Report
WORLD PR REPORT 20146
GLOBAL RANKINGSTOP 10
TOP 10:EDELMAN, WEBER SHANDWICK, THEN DAYLIGHT
• Double-digit growth for world’s two largest PR firms
• WPP PR firms flat, but Ketchum continues climb
2014 2013 AGENCY HQ 2013 [$] GROWTH [%]
1 1 EDELMAN USA 746,672,274 12.2
2 2 WEBER SHANDWICK USA 697,468,500 11.0
3 3 FLEISHMANHILLARD USA 554,190,000 1.5
4 4 MSLGROUP FRANCE 547,040,000 4.0
5 6 KETCHUM USA 490,000,000 11.4
6 5 BURSON-MARSTELLER USA 454,500,000 0.0
7 7 HILL+KNOWLTON STRATEGIES USA 386,100,000 -1.0
8 8 OGILVY PUBLIC RELATIONS USA 297,000,000 0.0
9 10 BRUNSWICK UK 210,000,000 0.0
10 9 HAVAS PR FRANCE 209,000,000 5.0
Edelman and Weber Shandwick have widened their lead as the largest PR firms in the world, according to the 2014 World Report.
Edelman, which grew 12% to $747m, has now held the number one spot for the past four years. Meanwhile, The Holmes Report estimates that Weber Shandwick grew by 11% to reach almost $700m in fee income, putting it well clear of third-ranked FleishmanHillard.
In general, it was a year of modest growth for the giant PR firms, with only Ketchum joining Edelman and Weber Shandwick in delivering double-digit growth. The Holmes Report estimates that the Omnicom agency grew by more than 11% in 2013, helping it leapfrog Burson-Marsteller to take fifth spot, climbing from seventh position two years ago.
That was the only significant rankings shift in the top ten. WPP PR firms — in particular, B-M, H+K and Ogilvy PR — were flat. Outside the top 10, meanwhile, there was eye-catching growth from GolinHarris (12%), Media Consulta (17%), W2O Group (21%) and Japan’s Vector (24%).
Fee income for eight of the top 10 firms is estimated by The Holmes Report based on published sources (including holding company revenues) and our own knowledge of the industry, with the majority of large holding companies continuing to use the Sarbanes-Oxley financial disclosure rules as an excuse not to publish numbers of individual businesses.
Independent firms, meanwhile, continue to outperform the holding companies in terms of growth, with Edelman only the most prominent example. Overall, independent firms submitting information to the Holmes Report 250 experienced growth of better than 12%, compared to average growth of around 4% for the public relations operations of the major holding companies.
The Global Rankings form part of the World PR Report, conducted in conjunction with ICCO, which will also include the results of a definitive survey of attitudes and trends among PR agencies worldwide.
Arun Sudhaman Partner & Editor-in-ChiefThe Holmes Report
WORLD PR REPORT 2014 7
GLOBAL RANKINGSTOP 250Revenue numbers for many agencies include subsidiaries—including research, advertising, and specialist PR firms—many of which operate under separate brands but nevertheless report into the listed PR agency. For full methodology please visit worldreport.holmesreport.com/methodology. For firms that submitted numbers in pounds sterling or euros, conversions were made using exchange rates as of 12/31/2013. In some cases, where last year’s submitted numbers were used for comparison purposes, growth numbers may be lower because of exchange rate fluctuations than they would have been in constant currency terms. Aside from large PR networks above $100m in fee income, the Rankings are totally dependent on submitted fee income; many agencies, often well-known, choose not to submit their numbers.
TABLE NOTES 1: MSLGroup includes fee income from a number of group agencies, including Qorvis Communications, Publicis Consultants, Kekst, Davies, CNC, CapitalMSL and JKL.2: Due to the differences in how some agencies classify revenue versus fee income, BlueFocus’ fee income was incorrectly listed as $271m in the first iteration of the global
ranking. This has since been corrected to $123.6m, which sees the China agency’s ranking revised downward to 16th in the Top 250 table. The corrected figure covers fee income from the firms BlueDigital operation, which includes public relations and digital marketing services, and the income from other subsidiaries of BlueFocus Communication Group is excluded. The new figure represents growth of more than 40%, compared to 2012.
3: Finn Partners includes acquisition of Widmeyer.4: Dentsu fee income is estimated based on its net sales.
2014 2013 AGENCY HQ FEE INCOME 2013 ($) FEE INCOME 2012 ($) GROWTH (%) STAFF
1 1 EDELMAN USA 746,672,274 665,600,000 12 5113
2 2 WEBER SHANDWICK USA 697,468,500 628,350,000 11 N/A
3 3 FLEISHMANHILLARD USA 554,190,000 546,000,000 2 N/A
4 4 MSLGROUP1 FRANCE 547,040,000 526,000,000 4 N/A
5 6 KETCHUM USA 490,000,000 440,000,000 11 N/A
6 5 BURSON-MARSTELLER USA 454,500,000 454,500,000 0 N/A
7 7 HILL+KNOWLTON STRATEGIES USA 386,100,000 390,000,000 N/A
8 8 OGILVY PR USA 297,000,000 297,000,000 0 N/A
9 10 BRUNSWICK UK 210,000,000 210,000,000 0 N/A
10 9 HAVAS PR FRANCE 209,000,000 199,000,000 5 1200
11 12 GOLINHARRIS USA 196,000,000 175,000,000 12 N/A
12 11 FTI CONSULTING USA 186,200,000 186,700,000 -0 N/A
13 15 MEDIA CONSULTA INTERNATIONAL GERMANY 166,861,800 143,233,200 17 674
14 13 COHN & WOLFE USA 162,180,000 159,000,000 2 N/A
15 15 GRAYLING UK 130,144,000 132,912,000 -2 N/A
16 19 BLUEFOCUS (BLUEDIGITAL)2 CHINA 123,361,000 87,771,000 41 3500
17 16 APCO WORLDWIDE USA 120,345,400 121,800,000 -1 658
18 18 PORTER NOVELLI USA 120,000,000 116,000,000 3 N/A
19 17 WAGGENER EDSTROM WORLDWIDE, INC. USA 117,608,000 118,462,000 -0 625
20 23 RLM FINSBURY US/UK 100,000,000 N/A N/A N/A
21 21 CHANDLER CHICCO COMPANIES USA 83,600,000 76,000,000 10 N/A
22 22 FSB COMUNICAÇÕES BRAZIL 77,000,000 71,006,375 8 N/A
23 25 W2O GROUP USA 75,000,000 62,005,000 21 N/A
24 20 PUBLIC SYSTÈME HOPSCOTCH FRANCE 73,526,153 77,395,950 -5 N/A
25 24 KREAB GAVIN ANDERSON UK/SWEDEN 66,000,000 66,600,000 -0 N/A
26 26 RES PUBLICA (NATIONAL PR) CANADA 64,000,000 60,000,000 7 N/A
27 27 RUDER FINN, INC. USA 63,249,000 56,148,000 13 N/A
28 N/A VECTOR INC. JAPAN 62,000,000 50,000,000 24 286
29 30 INSTINCTIF PARTNERS UK 54,249,233 47,263,287 15 355
30 31 FISCHERAPPELT GERMANY 52,003,000 46,345,275 12 340
31 28 TEXT100 CORPORATION USA 51,975,031 50,890,670 2 481
32 33 FREUD COMMUNICATIONS UK 49,954,314 45,413,013 10 N/A
33 35 MWW USA 48,020,000 42,875,000 12 217
34 29 BELL POTTINGER PRIVATE UK 47,500,000 47,313,690 0 229
35 39 LEWIS PR UK 45,848,320 35,819,000 28 N/A
36 N/A BRODEUR PARTNERS USA 45,000,000 N/A N/A N/A
37 32 HERING SCHUPPENER GERMANY 44,688,000 46,279,350 -3 N/A
38 43 FINN PARTNERS3 USA 44,400,000 32,293,000 38 287
39 41 DEVRIES GLOBAL USA 42,000,000 35,000,000 20 N/A
40 36 DENTSU PUBLIC RELATIONS INC.4 JAPAN 40,000,000 42,000,000 -5 N/A
41 54 ZENO GROUP USA 39,200,000 24,412,282 61 N/A
42 37 CITIGATE DEWE ROGERSON UK 38,678,000 39,810,486 -3 N/A
WORLD PR REPORT 20148
GLOBAL RANKINGSTOP 250Continued
TABLE NOTES 5: Racepoint Global includes the integration of Digital Influence Group.6: PadillaCRT is the new agency formed by the merger of Padilla Speers Beardsley and CRT/Tanaka.7: ICF Mostra is the new agency formed by the acquisition of Belgium’s Mostra by US agency ICF.
2014 2013 AGENCY HQ FEE INCOME 2013 ($) FEE INCOME 2012 ($) GROWTH (%) STAFF
43 60 WE ARE SOCIAL UK 38,677,478 22,750,085 70 450
44 40 MARINA MAHER COMMUNICATIONS USA 38,000,000 35,000,000 9 N/A
45 38 PRAP JAPAN, INC. JAPAN 37,000,000 36,229,000 2 263
46 55 RACEPOINT GLOBAL10 USA 34,000,000 23,543,959 44 127
47 44 MHP COMMUNICATIONS UK 33,209,960 29,601,135 12 172
48 48 GOOD RELATIONS GROUP UK 33,200,000 26,087,566 27 N/A
49 42 DKC PUBLIC RELATIONS USA 32,896,560 32,896,560 0 171
50 82 PADILLACRT5 USA 32,333,400 16,875,860 92 192
51 65 PPR AUSTRALIA 30,200,000 20,488,112 47 250
52 46 CITIZEN RELATIONS USA 28,785,000 28,500,000 1 N/A
53 52 ALLISON+PARTNERS USA 28,093,000 25,000,000 12 165
54 N/A MÁQUINA PUBLIC RELATIONS BRAZIL 27,459,408 24,895,202 10 250
55 51 LLORENTE & CUENCA SPAIN 27,427,260 25,183,350 9 330
56 58 BLUE RUBICON UK 26,842,029 23,412,960 13 N/A
57 47 BITE USA 26,368,273 26,895,639 -2 N/A
58 50 HOTWIRE PUBLIC RELATIONS UK 26,094,207 25,626,802 2 173
59 N/A GLOBAL STRATEGY GROUP USA 25,000,000 24,917,000 0 72
60 53 AGT COMMUNICATIONS GROUP RUSSIA 24,836,942 24,808,978 0 N/A
61 N/A EXPOSURE UK 24,652,252 22,756,112 8 200
62 76 MIKHAILOV & PARTNERS RUSSIA 23,309,000 18,870,372 24 104
63 63 OLIVER SCHROTT KOMMUNIKATION GERMANY 22,902,600 21,908,196 5 130
64 73 GIBBS & SOELL, INC. USA 22,490,108 19,734,980 14 127
65 69 TONIC HEALTH UK 22,159,535 20,053,878 11 N/A
66 59 FISHBURN UK 22,000,000 22,762,600 -3 N/A
67 62 THE RED CONSULTANCY UK 21,414,000 22,564,240 -5 N/A
68 72 ICF MOSTRA6 BELGIUM 21,413,000 19,752,785 8 158
69 71 TAYLOR USA 21,100,000 19,800,000 7 105
70 61 FOUR COMMUNICATIONS GROUP PLC UK 20,916,000 18,800,000 11 N/A
71 N/A SPN COMMUNICATIONS RUSSIA 20,121,836 N/A N/A 154
72 70 COYNE PR USA 20,040,000 20,027,000 0 133
73 74 THE OUTCAST AGENCY USA 20,000,000 19,240,000 4 87
74 66 STRATEGIC PUBLIC RELATIONS GROUP HONG KONG 20,000,000 20,320,000 -2 279
75 49 BARABINO & PARTNERS ITALY 19,950,000 24,000,000 -17 N/A
76 N/A PRAIN GLOBAL KOREA 19,892,451 16,017,266 24 140
77 83 A&B ONE GERMANY 19,471,200 16,744,950 16 93
78 68 GEELMUYDEN.KIESE GROUP NORWAY 19,471,200 20,161,160 -3 90
79 80 FRENCH/WEST/VAUGHAN USA 18,801,845 17,186,330 9 89
80 97 SHIFT COMMUNICATIONS INC. USA 18,600,000 14,225,795 31 N/A
81 93 HUNTER PUBLIC RELATIONS USA 18,417,092 14,554,310 27 108
82 N/A IMARS GROUP RUSSIA 18,100,000 14,650,000 24 127
83 64 CROS RUSSIA 18,000,000 21,550,000 -17 N/A
84 85 PEPPERCOMM USA 17,637,036 16,172,652 9 77
WORLD PR REPORT 2014 9
GLOBAL RANKINGSTOP 250Continued
TABLE NOTES 8 - Olson Engage was previously known as Olson PR
2014 2013 AGENCY HQ FEE INCOME 2013 ($) FEE INCOME 2012 ($) GROWTH (%) STAFF
85 89 PROSEK PARTNERS USA 17,398,091 15,000,000 16 68
86 67 INTEREL BELGIUM 17,290,000 20,173,050 -14 N/A
87 88 ADFACTORS PR INDIA 17,240,000 15,400,000 12 N/A
88 N/A SERVICEPLAN PR GROUP GERMANY 17,210,200 N/A N/A 93
89 96 M BOOTH USA 17,088,234 14,240,195 20 125
90 91 OLSON ENGAGE7 USA 16,891,000 14,750,000 15 87
91 84 INFORPRESS SPAIN 16,881,690 16,540,583 2 187
92 108 FAHLGREN MORTINE USA 16,842,065 12,397,732 36 97
93 98 5W PUBLIC RELATIONS USA 16,019,492 14,188,564 13 105
94 86 FARNER CONSULTING SWITZERLAND 15,960,000 16,100,000 -0 65
95 92 PR ONE SOUTH KOREA 15,911,644 14,746,544 8 140
96 106 LANSONS UK 15,521,430 12,605,912 23 77
97 87 MAITLAND UK 15,400,000 15,446,050 -0 N/A
98 100 HABERLEIN & MAUERER GERMANY 15,295,000 13,976,100 9 166
99 121 IRIS WORLDWIDE UK 15,035,488 10,858,856 42 109
100 90 ERGO KOMMUNIKATION GERMANY 15,029,000 14,899,050 0 131
101 94 MITCHELL COMMUNICATIONS GROUP, LLC USA 15,000,000 14,335,377 5 85
102 101 BRANDS2LIFE UK 14,599,036 13,169,790 11 106
103 99 FAKTOR 3 GERMANY 14,364,000 13,976,100 3 143
104 98 MAKOVSKY USA 14,250,000 13,000,000 10 55
105 75 COONEY/WATERS GROUP USA 14,020,940 18,961,000 -26 55
106 176 NEWGATE COMMUNICATIONS UK 13,573,958 5,463,024 149 N/A
107 95 ACHTUNG! GERMANY 13,472,900 14,305,725 -6 104
108 111 JACKSON SPALDING USA 13,471,600 12,095,500 11 93
109 120 TRACCS SAUDI ARABIA 13,323,000 10,870,000 23 203
110 109 AMI COMMUNICATIONS CZECH REPUBLIC 13,169,919 12,262,050 7 113
111 107 FORMULA USA 13,099,005 12,518,123 5 119
112 79 ROWLAND AUSTRALIA 12,500,000 17,943,977 -30 N/A
113 141 HANOVER UK 12,450,000 8,555,486 46 54
114 117 FIRST HOUSE NORWAY 12,444,810 11,284,427 10 30
115 78 ACTION GLOBAL COMMUNICATIONS CYPRUS 12,400,000 14,000,000 -11 N/A
116 102 RF BINDER USA 12,300,000 13,136,803 -6 76
117 123 LEVICK STRATEGIC COMMUNICATIONS USA 12,273,538 10,793,299 14 46
118 115 NELSON BOSTOCK GROUP UK 11,875,640 11,533,842 3 78
119 N/A F&H PORTER NOVELLI GERMANY 11,837,000 11,576,400 2 58
120 110 JESCHENKO MEDIENAGENTUR GERMANY 11,610,900 12,182,940 -5 51
121 119 WELLCOM FRANCE 11,438,000 11,207,250 2 N/A
122 118 SPARKPR USA 11,360,750 11,280,339 0 48
123 132 LAUNCHSQUAD USA 11,341,707 9,387,224 21 96
124 105 FRANK PR UK 11,333,617 12,901,144 -12 59
125 113 DAVIES USA 10,980,650 11,955,649 -8 35
126 122 KAPLOW USA 10,868,000 10,850,000 0 66
WORLD PR REPORT 201410
GLOBAL RANKINGSTOP 250Continued
TABLE NOTES 9: SEC fee income includes the acquisition of Cambre in Belgium.
2014 2013 AGENCY HQ FEE INCOME 2013 ($) FEE INCOME 2012 ($) GROWTH (%) STAFF
127 N/A MILTTON FINLAND 10,507,000 N/A N/A 95
128 125 TVC GROUP UK 10,500,000 10,568,350 -0 60
129 N/A GRUPO CDI - COMUNICAÇÃO E MARKETING BRASIL 10,200,000 8,500,000 20 184
130 N/A SEC4 ITALY 10,000,000 N/A N/A N/A
131 N/A VERITAS CANADA 10,000,000 N/A N/A 70
132 124 RASKY BAERLEIN USA 9,957,467 10,689,403 -7 38
133 116 124 COMMUNICATIONS CONSULTING THAILAND 9,956,522 11,450,000 -13 N/A
134 151 PEGASUS UK 9,629,117 7,596,205 27 64
135 133 APPROACH BRAZIL 9,452,400 9,300,000 2 105
136 140 RED DOOR COMMUNICATIONS UK 9,439,650 8,581,500 10 N/A
137 145 LIFT CONSULTING PORTUGAL 9,425,354 8,247,365 14 90
138 138 THE HOFFMAN AGENCY USA 9,422,000 8,650,000 9 110
139 N/A ADVICE A/S DENMARK 9,385,282 8,488,173 11 66
140 147 AGENCE ELAN FRANCE 9,310,000 8,042,850 16 N/A
141 139 SENATESHJ NEW ZEALAND 9,255,358 8,635,117 7 N/A
142 144 JEFFREYGROUP USA 9,201,011 8,400,330 10 107
143 136 3 MONKEYS COMMUNICATIONS UK 9,130,000 9,058,038 0 62
144 157 MAX BORGES AGENCY USA 9,100,000 6,910,743 32 2
145 134 TBWA/CORPORATE FRANCE 9,000,000 9,229,500 -3 N/A
146 146 OCTOPUS UK 8,840,000 8,179,903 8 61
147 N/A MURPHY O’BRIEN USA 8,818,200 7,400,652 19 38
148 163 MISCHIEF UK 8,798,000 6,394,665 38 70
149 143 KPR & ASSOCIATES SOUTH KOREA 8,668,970 8,444,506 3 99
150 150 EULOGY! UK 8,644,748 7,788,061 11 50
151 N/A MERRITT GROUP, INC. US 8,599,395 9,220,283 -7 39
152 159 PRO-VISION COMMUNICATIONS RUSSIA 8,591,874 6,796,308 26 75
153 142 KWITTKEN USA 8,400,000 7,304,348 15 N/A
154 N/A WAY TO BLUE UK 8,025,459 5,986,553 34 60
155 148 HORN GROUP USA 8,000,000 8,000,000 0 45
156 N/A EXPONENT USA 7,700,000 N/A N/A N/A
157 137 KIRCHHOFF CONSULT GERMANY 7,574,350 8,702,100 -13 59
158 N/A EMG THE NETHERLANDS 7,448,000 7,392,000 0 49
159 149 AIRFOIL GROUP USA 7,382,549 7,867,069 -6 N/A
160 N/A PODESTA GROUP US 7,374,124 6,144,941 20 18
161 N/A GREGORY FCA USA 7,300,000 7,300,000 0 42
162 156 MARCO DE COMUNICACION SPAIN 7,182,000 6,922,125 4 N/A
163 135 DIPLOMAT COMMUNICATIONS SWEDEN 7,049,000 9,229,500 -24 N/A
164 174 DODGE COMMUNICATIONS USA 7,006,911 5,510,756 27 46
165 162 FINK & FUCHS PUBLIC RELATIONS GERMANY 6,982,500 6,460,650 8 67
166 167 TALK PR UK 6,972,000 6,023,960 16 50
167 153 KOMM.PASSION GERMANY 6,916,000 7,251,750 -5 50
168 N/A ENGLANDER KNABE & ALLEN USA 6,700,000 6,100,000 10 20
WORLD PR REPORT 2014 11
GLOBAL RANKINGSTOP 250Continued
TABLE NOTES 10: Threepipe’s income includes the merger of digital agency Blowfish Digital.
2014 2013 AGENCY HQ FEE INCOME 2013 ($) FEE INCOME 2012 ($) GROWTH (%) STAFF
169 152 CP/COMPARTNER GERMANY 6,650,000 7,515,450 -12 70
170 N/A AKKANTO SA BELGIUM 6,570,200 5,910,960 11 29
171 165 LOU HAMMOND & ASSOCIATES USA 6,552,466 6,318,272 4 40
172 N/A JUNGRELATIONS AB SWEDEN 6,498,380 6,449,520 0 41
173 158 IMAGEM CORPORATIVA BRAZIL 6,487,000 6,732,343 -4 N/A
174 186 FOODMINDS USA 6,432,640 4,859,213 32 23
175 N/A RUMEUR PUBLIQUE FRANCE 6,251,000 6,204,000 0 43
176 169 BLISS INTEGRATED COMMUNICATIONS USA 6,231,000 5,698,000 9 37
177 160 PUBLIC COMMUNICATIONS INC. USA 6,214,154 6,546,731 -5 49
178 166 LAMBERT, EDWARDS & ASSOCIATES USA 6,188,000 6,026,000 3 40
179 189 360 PUBLIC RELATIONS USA 6,170,000 4,752,383 30 38
180 182 SALT UK 6,142,000 5,015,902 23 N/A
181 178 SPECTRUM USA 6,102,379 5,225,000 17 31
182 203 HIGHWIRE USA 6,022,255 4,093,335 47 36
183 168 PAN COMMUNICATIONS USA 6,008,000 6,002,000 0 38
184 164 SHINE UK 6,000,000 6,342,636 -5 N/A
185 173 RBB PUBLIC RELATIONS, LLC USA 5,810,104 5,603,460 4 33
186 171 MCNEELY PIGOTT & FOX PUBLIC RELATIONS USA 5,605,768 5,640,530 -0 52
187 184 LINHART PR USA 5,481,205 4,899,244 12 28
188 N/A YJOO SWITZERLAND 5,400,000 N/A N/A N/A
189 161 MCG MEDICAL CONSULTING GROUP GERMANY 5,333,300 6,473,835 -18 36
190 N/A FURRER.HUGI&PARTNER AG SWITZERLAND 5,331,970 4,741,440 13 25
191 N/A NARVA SWEDEN 5,320,000 3,300,000 61 26
192 187 REVIVEHEALTH USA 5,300,000 4,850,000 9 24
193 175 JP KOM GERMANY 5,187,000 5,500,000 -6 38
194 183 SINGER ASSOCIATES USA 5,063,344 4,907,595 3 17
195 193 INTEGRAL PR SERVICES PVT LIMITED INDIA 5,050,000 4,600,000 10 78
196 224 THREEPIPE COMMUNICATIONS LIMITED9 UK 4,980,000 3,132,048 59 55
197 N/A COONIC SPAIN 4,918,957 5,534,683 -11 57
198 N/A SAXUM US 4,918,713 4,070,590 21 32
199 N/A NYHUS COMMUNICATIONS UNITED STATES 4,907,974 4,195,255 17 16
200 N/A BERSAY COMMUNICATIONS GROUP TURKEY 4,901,287 4,622,340 6 58
201 190 KALTWASSER KOMMUNIKATION GERMANY 4,841,200 4,733,415 2 32
202 N/A ALL CHANNELS BULGARIA 4,814,904 N/A N/A N/A
203 N/A IKP AUSTRIA 4,721,500 4,530,636 4 32
204 201 CREATIVE CREST INDIA 4,712,400 4,200,000 12 72
205 199 TANGERINE PR UK 4,706,100 4,294,002 10 N/A
206 197 L C WILLIAMS & ASSOCIATES USA 4,659,667 4,404,394 6 30
207 N/A BRAY LEINO PR UK 4,648,000 4,435,455 5 33
208 211 BERKELEY PR INTERNATIONAL UK 4,469,680 3,633,887 23 N/A
209 192 COOPERKATZ & COMPANY, INC. USA 4,465,856 4,622,315 -3 30
210 N/A BATEMAN GROUP USA 4,400,000 3,090,454 42 29
WORLD PR REPORT 201412
GLOBAL RANKINGSTOP 250Continued
2014 2013 AGENCY HQ FEE INCOME 2013 ($) FEE INCOME 2012 ($) GROWTH (%) STAFF
211 N/A JMW KOMMUNIKATION SWEDEN 4,300,000 4,000,000 8 24
212 200 CIRKLE UK 4,150,958 4,254,980 -2 26
213 N/A AKIMA MEDIA GERMANY 4,150,000 3,500,000 19 31
214 198 INTERMARKET COMMUNICATIONS USA 4,128,335 4,312,805 -4 16
215 185 HAAS & HEALTH PARTNER GERMANY 4,123,000 4,878,450 -16 32
216 206 LANE USA 4,109,561 3,968,034 4 26
217 216 WHYTE CORPORATE AFFAIRS BELGIUM 4,084,000 3,446,559 19 N/A
218 196 PRETTY GREEN UK 4,083,600 4,435,455 -8 N/A
219 212 TRIGGER OSLO NORWAY 4,017,917 3,559,950 13 26
220 194 CERRELL ASSOCIATES US 4,001,072 4,505,793 -11 22
221 209 HBI INTERNATIONAL GERMANY 3,963,400 3,810,465 4 22
222 208 GROUNDFLOOR MEDIA USA 3,944,744 3,874,878 2 21
223 N/A RMA COMUNICAÇÃO BRAZIL 3,900,000 2,920,000 34 70
224 229 W COMMUNICATIONS UK 3,867,800 2,895,728 34 35
225 N/A WALKER SANDS USA 3,811,380 2,920,449 31 43
226 217 DUKAS PUBLIC RELATIONS USA 3,741,809 3,438,000 9 17
227 N/A NOTA BENE SPAIN 3,724,000 3,696,000 0 37
228 202 STANDING PARTNERSHIP USA 3,704,065 4,100,532 -10 N/A
229 N/A DABO & CO UAE 3,701,459 3,065,782 21 48
230 219 THE SKILLS GROUP AUSTRIA 3,649,520 3,296,250 11 18
231 214 CCGROUP UK 3,643,610 3,485,021 5 23
232 N/A PLMR UK 3,627,799 2,615,782 39 29
233 N/A MEROPA COMMUNICATIONS SOUTH AFRICA 3,500,000 3,500,000 0 41
234 N/A CROSSROADS US 3,331,926 2,746,000 21 15
235 N/A EML WILDFIRE UK 3,320,000 N/A N/A 26
236 218 STORYMAKER GERMANY 3,298,400 3,335,805 -1 30
237 N/A HB AGENCY USA 3,277,000 2,514,000 30 21
238 N/A ROCKORANGE USA 3,200,000 N/A N/A N/A
239 127 FORTUNE PR INDONESIA 3,183,509 10,055,460 -68 N/A
240 N/A PRAM CONSULTING CZECH REPUBLIC 3,139,285 5,663,907 -45 10
241 N/A CAP & CIME PR SAS FRANCE 3,066,804 2,373,376 29 22
242 N/A PUBLICUM GROUP LITHUANIA 3,060,000 2,164,000 41 58
243 227 SCHWARTZ PUBLIC RELATIONS GERMANY 3,029,740 2,900,700 4 21
244 N/A ASESORES DE RELACIONES PÚBLICAS Y COMUNICACIÓN SPAIN 3,029,578 3,006,799 0 41
245 N/A PROFILE PR FRANCE 2,926,000 2,904,000 0 24
246 237 RED LORRY YELLOW LORRY UK 2,921,791 2,375,440 23 N/A
247 233 SEESAME COMMUNICATION EXPERTS SLOVAKIA 2,920,680 2,647,548 10 25
248 N/A EVERCOM SPAIN 2,878,201 2,686,465 7 27
249 232 EON STAKEHOLDER RELATIONS PHILIPPINES 2,800,000 2,740,000 2 N/A
250 230 TREVELINO/KELLER USA 2,752,000 2,888,624 -5 17
WORLD PR REPORT 2014 13
GLOBAL RANKINGSGROWTH
FAST MOVERS:UK FIRMS LEAD INDUSTRY GROWTH
AGENCY [GLOBAL] HQ GROWTH [%] FEE INCOME 2013
NEWGATE COMMUNICATIONS UK 148.5 13,573,958
PADILLACRT USA 91.6 32,333,400
WE ARE SOCIAL UK 70.0 38,677,478
NARVA SWEDEN 61.2 5,320,000
ZENO GROUP USA 60.6 39,200,000
THREEPIPE COMMUNICATIONS LIMITED UK 59.0 4,980,000
PPR AUSTRALIA 47.4 30,200,000
HIGHWIRE US 47.1 6,022,255
HANOVER UK 45.5 12,450,000
RACEPOINT GLOBAL US 44.4 34,000,000
UK-based firms dominated the fast movers with four firms ranking among the top 10 fastest growing around the globe.
For the second consecutive year, Newgate takes top spot as the fastest-growing PR firm, this year expanding by almost 150% to reach more than $13m in fee income. The consultancy is joined by other UK-based firms We Are Social, Threepipe Communications (after a merger with digital agency Blowfish Digital) and Hanover.
Four US firms also make the top 10. PadillaCRT and Racepoint Global owe much of their growth to mergers, but Zeno Group and Highwire achieved their numbers organically. Sweden’s Narva and Australia’s PPR round out the top 10 fastest-growing PR firms in the world.
On a regional basis, China’s largest independent PR firm BlueFocus (BlueDigital) ranks second in Asia-Pacific, following a downward revision of its numbers since the tables were first published. Due to the differences in how some agencies classify revenue versus fee income, BlueFocus’ fee income was incorrectly listed as $271m in the first iteration of the global ranking. This has since been corrected to $123.6m, which sees the China agency’s ranking revised downward to 16th in the Top 250 table.
The corrected figure covers fee income from the firm’s BlueDigital operation, which includes public relations and digital marketing services, and the income from other subsidiaries of BlueFocus Communication Group is excluded. The new figure represents growth of more than 40%, compared to 2012.
Taking into account its reporting structure, it is unsurprising that even when breaking the rankings down by region, BlueFocus remains unparalleled as the largest agency of the group at $124 million. Its closest fast moving rivals across all regions were firms with less than $50 million in fees, among them: UK-based Lewis PR at $45 million, US-based Finn Partners at $44 million and US-based Zeno Group at $39.2 million.
Overall, firms in Asia-Pac enjoyed double-digit growth that averaged 13.7% across all reporting firms in the region. Among the more mature markets, only the UK-based firms experienced overall double-digit growth at 10.3%. The US-based firms grew at 6.5%, while EMEA-based agencies trailed with 4.4% growth in fee income.
Aarti Shah Associate Partner & Senior EditorThe Holmes Report
WORLD PR REPORT 201414
GLOBAL RANKINGSGROWTHContinued
“ UK-based firms dominated the fast movers with four firms ranking among the top 10 fastest growing around the globe...”
AGENCY [US] GROWTH [%] FEE INCOME 2013
PADILLACRT 91.6 32,333,400
ZENO GROUP 60.6 39,200,000
HIGHWIRE 47.1 6,022,255
RACEPOINT GLOBAL 44.4 34,000,000
BATEMAN GROUP 42.4 4,400,000
FINN PARTNERS 37.5 44,400,000
FAHLGREN MORTINE 35.8 16,842,065
FOODMINDS 32.4 6,432,640
MAX BORGES AGENCY 31.7 9,100,000
SHIFT COMMUNICATIONS INC. 30.7 18,600,000
AGENCY [UK] GROWTH [%] FEE INCOME 2013
NEWGATE COMMUNICATIONS 148.5 13,573,958
WE ARE SOCIAL 70.0 38,677,478
THREEPIPE COMMUNICATIONS LIMITED 59.0 4,980,000
HANOVER 45.5 12,450,000
IRIS WORLDWIDE 41.6 15,035,488
PLMR 38.7 3,627,799
MISCHIEF 37.6 8,798,000
WAY TO BLUE 34.1 8,025,459
W COMMUNICATIONS 33.6 3,867,800
LEWIS PR 28.0 45,848,320
AGENCY [EUROPE] GROWTH [%] FEE INCOME 2013
NARVA 61.2 5,320,000
PUBLICUM GROUP 41.4 3,060,000
CAP & CIME PR SAS 29.2 3,066,804
PRO-VISION COMMUNICATIONS 26.4 8,591,874
IMARS GROUP 23.5 18,100,000
MIKHAILOV & PARTNERS 23.5 23,309,000
WHYTE CORPORATE AFFAIRS 18.5 4,084,000
MEDIA CONSULTA INTERNATIONAL 16.5 16,686,180
A&B ONE 16.3 19,471,200
AGENCE ELAN 15.8 9,310,000
AGENCY [ASIA-PACIFIC] GROWTH [%] FEE INCOME 2013
PPR 47.4 30,200,000
BLUEFOCUS (BLUEDIGITAL) 40.5 123,361,000
PRAIN GLOBAL INC. 24.2 19,892,451
VECTOR INC. 24.0 62,000,000
TRACCS 22.6 13,323,000
DABO & CO 20.7 3,701,459
CREATIVE CREST 12.2 4,712,400
ADFACTORS PR 11.9 17,240,000
INTEGRAL PR SERVICES PVT LIMITED 9.8 5,050,000
PR ONE 7.9 15,911,644
WORLD PR REPORT 2014 15
AGENCY GROWTH (%) FEE INCOME 2013 ($)
CLICK PR 171.1 807,451.00
AVANGARD GLOBAL COMMUNICATIONS 87.4 2,530,000.00
THE10COMPANY 70 850,000.00
M3 COMMUNICATIONS GROUP 59.6 2,420,600.00
RICE COMMUNICATIONS 39.8 1,502,624.00
FINN 36.8 1,336,650.00
STUNTMAN PR 35.2 511,000.00
URBAN GRUPO DE COMUNICACIÓN 29.9 152,000.00
BABEL PUBLIC RELATIONS 28.9 2,338,193.00
COOPR 28.1 796,670.00
MONET+ASSOCIÉS 25.9 1,995,000.00
PRHUB 21.2 800,000.00
EPIC COMMUNICATIONS 14 2,270,500.00
TRIBECA PUBLIC RELATIONS 2.5 808,000.00
GLOBAL RANKINGSGROWTH
HOLDING GROUPS/NETWORKS
TABLE NOTES1: Interpublic Group’s PR fee income is estimated based on revenues provided by its CMG division.
BEST OF THE RESTBEYOND THE TOP 250, A NUMBER OF PR AGENCIES FROM AROUND THE WORLD CATCH THE EYE, DEMONSTRATING STRONG GROWTH AND AN EYE FOR INNOVATION. HERE ARE 15 TO WATCH.
AGENCY GROWTH (%) INCOME 2013
WPP 3 1,528,860,000
OMNICOM GROUP 0 1,300,000,000
INTERPUBLIC GROUP 8 1,300,000,000
PUBLICIS GROUPE 4 547,040,000
PROI 22 513,134,421
HUNTSWORTH GROUP 1 285,022,000
WORLDCOM -18 281,009,531
HAVAS PR 5 209,000,000
IPREX 33 200,000,000
NEXT 15 7 159,526,000
WORLD PR REPORT 201416
“ One critical decision we made when the ranking project began was to define public relations broadly. This decision was grounded in the philosophical approach of The Holmes Report, which believes that public relations includes all of the activities in which an organization engages in order to strengthen its relationship with any public or stakeholder group...”
Thus, public relations fee income includes not only fees derived from traditional PR activities (media relations, community relations, employee communications, investor relations, public affairs) but also fees (but only fees) related to activities such as research, design, advertising and social media relations—as long as those activities were carried out by a firm whose primary activity is public relations.
We have always considered advertising, for example, to be a perfectly legitimate tool of public relations management. Indeed, many in-house public relations departments have responsibility for substantial advertising budgets, particularly when the advertising is designed to meet corporate or public affairs objectives rather than marketing or sales objectives. It would therefore be illogical to exclude fees related to advertising from a broad and inclusive ranking.
So the precise wording on the rankings form provided to participating agencies was as follows: “The Holmes Report defines public relations broadly as any activity designed to help corporations and other institutions build mutually-beneficial relationships with their key stakeholders, including but not limited to customers, employees, shareholders, legislators and regulators, communities, and the media. “The primary business of a public relations firm for the purposes of this document should involve either strategic, media-neutral counsel or earned media, but a public relations firm may engage in a wide range of activities including but not limited to media relations, sponsorship, advertising, corporate identity, web design, and research. However, firms may include only the fees for this work, not payments related tomedia buys, production, etc.
“The Holmes Report reserves the right to make its own judgment about whether a firm qualifies as a public relations firm for the purposes of these rankings, and to exclude firms it considers not properly qualified.” This is a broader definition than the one used by many other organizations providing local market rankings of public relations firms, which means that several of the firms providing numbers to The Holmes Report will receive credit for income not included in other rankings. The numbers for Edelman, for example, include fees from its StrategyOne research division and its Blue advertising unit, adding between $7 million to the more tightly defined fee income reported to O’Dwyer’s newsletter. There were several obstacles to complete accuracy, the most obvious of which is the decision of the largest publicly-traded holding companies to interpret the Sarbanes-Oxley regulations in the United
States in such a way that they preclude the release of information about specific operating units.
In truth, there is nothing in Sarbanes-Oxley that prevents the release of information. Indeed, some publicly-traded communications companies do continue to provide information about individual public relations brands. For the very largest companies, such as WPP, Omnicom, and Interpublic, the issue appears to be one of cost—the expense associated with ensuring the accuracy of published numbers—rather than legal prohibition. Needless to say, none of the Sarbanes-Oxley restricted holding companies or their PR firms co-operated in the creation of this ranking, and so The Holmes Report/ICCO was compelled to rely on several sources to compile a ranking that it believes to be broadly accurate. Among the information sources on which we drew:
• Publicly-available information (including the last official ranking to pre-date Sarbanes-Oxley, for 2001 fee income, and some information available from the firms themselves related to headcount);
• Information that has entered the public domain despite the best efforts of the companies (specifically, information from former employees relating to headcount in specific offices, supplemented in some cases by directories of agency employees, as well as widely known revenue-per-employee targets); and
• The judgment of The Holmes Report/ICCO, which covers the field in both the U.S. and Europe and can draw on information about clients moves, office openings and new hires to form a broad picture of the industry.
GLOBAL RANKINGSMETHODOLOGY
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WORLD PR REPORT 201418
Public relations agency leaders from around the world are generally bullish on the outlook for their business, expressing greater optimism about the growth of the PR market in general and about their own agencies’ profitability.
GLOBAL OVERVIEWTRENDS & ATTITUDES
“ Agency leaders were more optimistic all around the world as markets rebound and social media force companies to engage with their stakeholders in a more meaningful way...”
That optimism appears to stem from a belief that marketers are increasing the share of their budget allocated to public relations, and are increasingly willing to turn to public relations firms for non-traditional services, including digital and social media work—offsetting some concerns about the importance of corporate reputation and corporate responsibility.
Optimism levels rebounded from last year’s survey, with agency principals averaging a 7.69 (on a scale of one to 10) when asked whether they were optimistic about the future of public relations in their market (up from 7.50 in 2013) and a 7.60 (up from 7.38) when asked whether they expected profits to increase this year.
The research—conducted by The Holmes Report and the International Communications Consultancies Organisation (ICCO) among more than 500 PR agency principals as part of the World PR Report—found a continuing gap between the Americas and Europe when it comes to optimism: Latin American agency principals were the most optimistic (8.71), followed by those in North America (8.46) and Asia (8.35). But Eastern Europeans (6.89) and Western Europeans (7.28) were considerably less confident about the future, with firms in the UK (7.83) somewhere in the middle of the two extremes.
The optimism level of Western European firms was actually an improvement over 2013, when it was just 6.70, but Eastern Europe suffered a sharp decline, down from 7.31—the only region where agency leaders were more pessimistic than the year before.
“Agency leaders were more optimistic all around the world as markets rebound and social media force companies to engage with their stakeholders in a more meaningful way,” said Paul Holmes, publisher/CEO of The Holmes Report. “The only exception is Eastern Europe, where PR firms are not feeling the benefit of the recovery.”
Globally, agencies were increasingly convinced that marketers are increasing their spending on PR relative to other disciplines (6.19, up from 5.63 the previous year). Agencies in the Asia (6.56), the UK (6.53) and North America (6.51) were the most likely to see such an increase, while Eastern European agencies were the least likely (5.48).
Another major difference between Europe and the rest of the world is the willingness of clients to turn to PR firms for “non-traditional” services such as corporate advertising, digital services, and word-of-mouth. Western European firms were the least likely to see this kind of diversification (6.65), although Australian agencies seem to be stuck in a similar rut (6.67) compared to their peers in North America (7.49) and Latin America (7.71).
But if agency principals are more optimistic when it comes to marketing budgets, they were less likely to see corporate reputation being prioritized. When asked if CEOs in their market were taking corporate reputation seriously, the average score was 7.35, down from 7.54 last year. When asked whether clients were taking corporate responsibility more seriously, the average score was 6.76, down from 6.88.
Corporate reputation was seen as a big issue in North America (8.20) but is being taken least seriously in Eastern Europe (6.52). CSR is a significant priority in Latin America (7.94) but again lags in Eastern Europe (6.14).
“Optimism is clearly the watchword for this year’s World PR Report — and as we head further out of the downturn, there are some clues here as to what holds the best opportunities for the industry,” added ICCO chief executive Francis Ingham. “Non-traditional services continue to grow as a client draw, and while corporate reputation services seem to have waned a little, let’s not forget that they still remain important for over 70% of agencies around the world.”
Globally, the perennial concern about talent intensified, with agency heads less confident (6.01, compared to 6.13 in 2013) that there was “a plentiful supply of intelligent, well-educated talent” in their market. The concern was greatest in Eastern Europe (5.40) and in the UK (5.77).
“In some ways, that number is the most worrying for Eastern Europe,” said Holmes. “In the past, we have seen the greatest concern about talent in markets where the PR business is flourishing—where the demand for good people is outstripping supply. The fact that Eastern European agencies are struggling to find talent suggests a deeper malaise. The PR industry in the region has not convinced either potential clients or potential employees of its value.”
OPTIMISM REBOUNDS AS MARKETERS SPEND MOREON PR
• Marketers increase PR budgets• Digital and social media upturn• Corporate reputation and
responsibility less important• Talent remains perennial concern
WORLD PR REPORT 2014 19
GLOBAL OVERVIEWTRENDS & ATTITUDES
OPTIMISM:I am optimistic about the growth of the public relations market here
PROFITABILITY:I expect an increase in agency profitability this year
2014 2013
NA: NORTH AMERICALAT: LATIN AMERICAUK: UNITED KINGDOMW EU: WESTERN EUROPEE EU: EASTERN EUROPEAUST: AUSTRALIAASIA: ASIAM EA: MIDDLE EAST
7.5
8.5
8.3
8.7
8.5
7.8
7.9
7.4
7.9
7.6
7.9
7.9
8.4
8
6.9
6.9
8.1
7.7
7.6
6.7
7.9
8.2
7.3
7.3
7.3
7.4
7.5
LATIN AMERICA
8.7
EASTERN EUROPE
6.9
HIGH
LOW
LATIN AMERICA
8.5
EASTERN EUROPE
6.9
HIGH
LOW
7.4
8.04
6.6
7.4
7.7
7.5
7.8
6.8
0 2 4 6 8 10
GLOBAL
NA
LAT
UK
W EU
E EU
AUST
ASIA
M EA
OUT OF 10
6.9
GLOBAL
NA
LAT
UK
W EU
E EU
AUST
ASIA
M EA
OUT OF 10 0 2 4 6 8 10
Continued
WORLD PR REPORT 201420
CORPORATE REPUTATION:CEOs in this market take corporate reputation seriously
SOCIAL RESPONSIBILITY:Companies in this market are paying more attention to corporate social responsibility
2014 2013
NA: NORTH AMERICALAT: LATIN AMERICAUK: UNITED KINGDOMW EU: WESTERN EUROPEE EU: EASTERN EUROPEAUST: AUSTRALIAASIA: ASIAM EA: MIDDLE EAST
NORTH AMERICA
8.2
EASTERN EUROPE
6.5
HIGH
LOW
LATIN AMERICA
7.9
EASTERN EUROPE
6.1
HIGH
LOW
Continued
GLOBAL
NA
LAT
UK
W EU
E EU
AUST
ASIA
M EA
OUT OF 10 0 2 4 6 8 10
GLOBAL
NA
LAT
UK
W EU
E EU
AUST
ASIA
M EA
OUT OF 10 0 2 4 6 8 10
7.5
8.2
7.9
7.3
7.6
7.1
7.2
6.5
8.2
7.4
7.2
7.2
8.2
8.0
7
6.6
6.1
8.5
7.4
7.9
6.4
6.5
6.5
6.8
7.2
6.1
6.86.9
7.4
6.5
6.8
7.7
6.7
5.7
7.5
5.8
GLOBAL OVERVIEWTRENDS & ATTITUDES
WORLD PR REPORT 2014 21
0 2 4 6 8 10
GLOBAL
NA
LAT
UK
W EU
E EU
AUST
ASIA
M EA
OUT OF 10
GLOBAL
NA
LAT
UK
W EU
E EU
AUST
ASIA
M EA
OUT OF 10 0 2 4 6 8 10
SHAREHOLDER INTERESTS:Companies understand the need to balance shareholder interests with those of other stakeholders
AUSTRALIA
7.3
EASTERN EUROPE
5.7
HIGH
LOW
MARKETING SPEND:Marketers are spending more money on public relations relative to other marketing disciplines
ASIA
6.6
EASTERN EUROPE
5.5
HIGH
LOW
Continued
2014 2013
NA: NORTH AMERICALAT: LATIN AMERICAUK: UNITED KINGDOMW EU: WESTERN EUROPEE EU: EASTERN EUROPEAUST: AUSTRALIAASIA: ASIAM EA: MIDDLE EAST
6.2
6.5
5.9
6.5
5.9
5.5
6.3
6.6
6
5.6
6.3
6.6
5.8
5.4
4.8
5.8
5.1
5.2
6.9
7.2
6.9
6.7
7.3
7
7
5.7
7.4
6.5
6.7
6.6
7.5
6.8
6.4
5.9
6.1
7.5
GLOBAL OVERVIEWTRENDS & ATTITUDES
WORLD PR REPORT 201422
7.4
7
6.7
0 2 4 6 8 10
0 2 4 6 8 10
Continued
NON-TRADITIONAL SERVICES:Clients in this market are willing to turn to public relations firms to provide non-traditional services
LATIN AMERICA
7.7
WESTERN EUROPE
6.7
HIGH
LOW
DIGITAL:PR agencies in this market are successfully addressing client digital needs
NORTH AMERICA
7.1
MIDDLE EAST
6.1
HIGH
LOW
2014 2013
NA: NORTH AMERICALAT: LATIN AMERICAUK: UNITED KINGDOMW EU: WESTERN EUROPEE EU: EASTERN EUROPEAUST: AUSTRALIAASIA: ASIAM EA: MIDDLE EAST
7
7.5
7.7
7.5
6.9
7
7.6
6.8
7.9
6.8
6.3
7.5
7.1
6.8
6.6
6.2
6.9
6.1
6.2
6.2
6.56.6
7.2
6.1
5.8
6.6
6.8
5.6
6.8
6.9
GLOBAL OVERVIEWTRENDS & ATTITUDES
GLOBAL
NA
LAT
UK
W EU
E EU
AUST
ASIA
M EA
OUT OF 10
GLOBAL
NA
LAT
UK
W EU
E EU
AUST
ASIA
M EA
OUT OF 10
7
7.6
6.4
WORLD PR REPORT 2014 23
TALENT:There is a plentiful supply of intelligent, well-educated talent in this market
LATIN AMERICA
6.9
EASTERN EUROPE
5.4
HIGH
LOW
0 2 4 6 8 10
6
6.4
6.9
5.8
6.4
5.4
5.9
5.9
5.8
6.1
6.2
5.8
5.9
6.5
5.9
5.8
5
5
Continued
2014 2013
NA: NORTH AMERICALAT: LATIN AMERICAUK: UNITED KINGDOMW EU: WESTERN EUROPEE EU: EASTERN EUROPEAUST: AUSTRALIAASIA: ASIAM EA: MIDDLE EAST
0 2 4 6 8 10
OUTSOURCING:PR firms in this market do a good job of sourceing talent from outside the industry
HIGH
LOW
AUSTRALIA
7.3
EASTERN EUROPE
5.7
5.7
6.2
5.2
5
5.4
5.2
5.1
5.5
5.5
GLOBAL OVERVIEWTRENDS & ATTITUDES
GLOBAL
NA
LAT
UK
W EU
E EU
AUST
ASIA
M EA
OUT OF 10
GLOBAL
NA
LAT
UK
W EU
E EU
AUST
ASIA
M EA
OUT OF 10
WORLD PR REPORT 201424
GREATEST GLOBAL CHALLENGES
CHALLENGESGREATEST GLOBAL CHALLENGES
The ability to attract top talent is now the biggest concern for public relations agency leaders around the world, according to a survey conducted by The Holmes Report and the International Communications Consultancies Organisation as part of the World PR Report.
“ ...many clients are still reluctant to spend on public relations, and agencies are feeling the pressure to deliver more for less...”
Almost four out of 10 (39.9 percent) consultancy principals responding to our survey cited “staff recruitment” as one of the most significant challenges facing PR firms in their market. That was an increase over last year, when recruitment was second (36.9 percent) behind concerns about overall economic conditions (37.6 percent).
Economic conditions were a less pressing concern this year, with just 25.8 percent identifying them as one of the three greatest challenges to their growth—although many (31.54 percent) continued to worry that clients are unwilling to commit sufficient funds to public relations.
“The recession may be over in most markets around the world,” says Paul Holmes, editor of The Holmes Report, “but many clients are still reluctant to spend on public relations, and agencies are feeling the pressure to deliver more for less.”
The survey identified a number of concerns that may be contributing to that problem.
The first is increased competition. This year, more than a quarter of responding firms (25.5 percent) cited competition from other marketing disciplines as a major obstacle to growth—that continues a steady increase from 22.9 percent of respondents in 2013, and 20.6 percent in 2012. Similarly, 22.82 percent cited competition from other PR firms as one of their toughest challenges, up from 18.2 percent in 2013 and just 15.5 percent in 2012.
The second is the ability to master digital and other new technologies—although PR firms do appear to be rising to the challenge, as this issue was cited by 22.5 percent of respondents this year, compared to 25.2 percent last year.
The third is measurement and evaluation. While this was cited by just 13.8% percent of respondents (down from 17.5 percent) last year, it seems likely that there is some correlation between the industry’s ongoing measurement problems and the unwillingness of clients to invest sufficient funds. Says Holmes, “If we were providing clients with convincing metrics to show that PR impacts their performance, we would surely be seeing higher levels of investment.”
The fourth is client education. More than one in four (21 percent) suggested that client understanding of PR was a significant obstacle to growth, and an ever greater number (24.5 percent) worried that clients were too focused on the short-term.
“The fact that talent is now the leading issue for PR agencies globally shows that growing pains are once again top of the agenda, while economic conditions have slipped down the list,” added ICCO chief executive Francis Ingham. “This is reassuring to some extent, but there is some concern over the growing pressures brought on by competition from other marketing disciplines - leading to this continuing reluctance from clients to spend on PR.
“As the global PR industry’s talents become increasingly diverse, it is inevitable that competition with other disciplines will be an everyday experience — an interesting dynamic which I believe can only help us to hone our abilities.”
WORLD PR REPORT 2014 25
CHALLENGESGREATEST GLOBAL CHALLENGESContinued
2014 2013
NA: NORTH AMERICALAT: LATIN AMERICAUK: UNITED KINGDOMW EU: WESTERN EUROPEE EU: EASTERN EUROPEAUST: AUSTRALIAASIA: ASIAM EA: MIDDLE EASTAFR: AFRICA
GLOBAL CHALLENGES:Which of the following issues is the greatest challenge for PR firms in your market?
0% 10% 20% 30% 40% 50% 60% 70% 80%
NA
LAT
UK
W EU
E EU
AUST
ASIA
M EA
AFR
PERCENTAGE
60.9%
30.5%
58.8%
55.6%
47.4%
54.6%
28.6%
33.3%
48.9%
23.2%
42%
45.5%
55.6%
50%
58.3%
STAFF RECRUITMENT
UNITED KINGDOM
60.9%
WESTERN EUROPE
30.5%
HIGH
LOW
46.2%
47.1%
51.2%
WORLD PR REPORT 201426
CHALLENGESGREATEST GLOBAL CHALLENGESContinued
2014 2013
NA: NORTH AMERICALAT: LATIN AMERICAUK: UNITED KINGDOMW EU: WESTERN EUROPEE EU: EASTERN EUROPEAUST: AUSTRALIAASIA: ASIAM EA: MIDDLE EASTAFR: AFRICA
NA
LAT
UK
W EU
E EU
AUST
ASIA
M EA
AFR
PERCENTAGE 0% 10% 20% 30% 40% 50% 60% 70% 80%
18.3%
23.5%
15.2%
32.4%
20%
23.5%
31.6%
33.3%
29.7%
33%
28.9%
27.3%
23.8%
18.2%18.2%
18.2%
8.3%
DIGITAL AND NEW TECHNOLOGIES
AFRICA
33.3%
UNITED KINGDOM
15.2%
HIGH
LOW
0% 10% 20% 30% 40% 50% 60% 70% 80%
22.2%
STAFF RETENTION
AUSTRALIA
54.6%
WESTERN EUROPE
9.5%
HIGH
LOW
23.2%
11.8%
23.9%
9.5%
20%
54.6%
38.2%
31.6%
NA
LAT
UK
W EU
E EU
AUST
ASIA
M EA
AFR
PERCENTAGE
WORLD PR REPORT 2014 27
NA
LAT
UK
W EU
E EU
AUST
ASIA
M EA
AFR
PERCENTAGE 0% 10% 20% 30% 40% 50% 60% 70% 80%
22.2%
COMPETITION FROM OTHER MARKETING DISCIPLINES
NORTH AMERICA
36.6%
ASIA
8.8%
HIGH
LOW
36.6%
23.5%
21.7%
15.2%
24%
9.1%
8.8%
21.1%
25.3%
16.7%
28.9%
42.9%
4.8%
36.4%
22.7%
8.3%
22.2%
CHALLENGESGREATEST GLOBAL CHALLENGESContinued
2014 2013
NA: NORTH AMERICALAT: LATIN AMERICAUK: UNITED KINGDOMW EU: WESTERN EUROPEE EU: EASTERN EUROPEAUST: AUSTRALIAASIA: ASIAM EA: MIDDLE EASTAFR: AFRICA
0% 10% 20% 30% 40% 50% 60% 70% 80%
17.7%
27.3%
25.7%
26.1%
LATIN AMERICA
29.4%
AFRICA
11.1%
HIGH
LOW
21.1%
14%
COMPETITION FROM OTHER PR FIRMS
11.1%
29.4%
28.1%NA
LAT
UK
W EU
E EU
AUST
ASIA
M EA
AFR
PERCENTAGE
WORLD PR REPORT 201428
CHALLENGESGREATEST GLOBAL CHALLENGESContinued
2014 2013
NA: NORTH AMERICALAT: LATIN AMERICAUK: UNITED KINGDOMW EU: WESTERN EUROPEE EU: EASTERN EUROPEAUST: AUSTRALIAASIA: ASIAM EA: MIDDLE EASTAFR: AFRICA
NA
LAT
UK
W EU
E EU
AUST
ASIA
M EA
AFR
PERCENTAGE 0% 10% 20% 30% 40% 50% 60% 70% 80%
26.5%
9.1%
26.7%
19.6%
EASTERN EUROPE
36%
AUSTRALIA
9.1%
HIGH
LOW
21.1%
36%
FINANCIAL PRESSURE TO MEET PROFIT TARGETS 13.2%
22.2%
33.3%29.4%
9.8%
28.6%
8.3%
24.4%
32.3%
18.2%
33.3%
13.6%
0% 10% 20% 30% 40% 50% 60% 70% 80%
26.5%
9.1%
31.4%
15.2%
AFRICA
44.4%
AUSTRALIA
9.1%
HIGH
LOW
15.8%
26%
ECONOMIC CONDITIONS
28.6%
44.4%
16.7%17.7%
18.3%
31%
41.7%
6. 51.1%
45.5%
27.3%
33.3%
27.3%
NA
LAT
UK
W EU
E EU
AUST
ASIA
M EA
AFR
PERCENTAGE
WORLD PR REPORT 2014 29
CHALLENGESGREATEST GLOBAL CHALLENGESContinued
2014 2013
NA: NORTH AMERICALAT: LATIN AMERICAUK: UNITED KINGDOMW EU: WESTERN EUROPEE EU: EASTERN EUROPEAUST: AUSTRALIAASIA: ASIAM EA: MIDDLE EASTAFR: AFRICA
6.5%
5.9%
0% 10% 20% 30% 40% 50% 60% 70% 80%
20%
27.3%
11.1%
21.1%
23.5%
33.3%
33.3%
15.6%
13.1%
26%
18.2%
22.2%
20.5%
8.3%
LACK OF CLIENT UNDERSTANDING
ASIA
27.3%
LATIN AMERICA
5.9%
HIGH
LOW
18.7%20.7%
NA
LAT
UK
W EU
E EU
AUST
ASIA
M EA
AFR
PERCENTAGE
0% 10% 20% 30% 40% 50% 60% 70% 80%
39%
17.7%
37%
26.7%
20%
32.4%
21.1%
22.2%
27.5%
25%
26.7%
32.3%
23.8%
36.4%27.3%
25%
25%
44.4%
CLIENTS UNWILLING TO COMMIT FUNDS
NORTH AMERICA
39%
LATIN AMERICA
17.7%
HIGH
LOW
NA
LAT
UK
W EU
E EU
AUST
ASIA
M EA
AFR
PERCENTAGE
WORLD PR REPORT 201430
0% 10% 20% 30% 40% 50% 60% 70% 80%
22%
17.7%
23.9%
30.5%
38%
20.6%
26.3%
11.1%
27.3%
CLIENTS TOO FOCUSED ONSHORT TERM
EASTERN EUROPE
38%
AFRICA
11.1%
HIGH
LOW
CHALLENGESGREATEST GLOBAL CHALLENGESContinued
2014 2013
NA: NORTH AMERICALAT: LATIN AMERICAUK: UNITED KINGDOMW EU: WESTERN EUROPEE EU: EASTERN EUROPEAUST: AUSTRALIAASIA: ASIAM EA: MIDDLE EASTAFR: AFRICA
NA
LAT
UK
W EU
E EU
AUST
ASIA
M EA
AFR
PERCENTAGE
WORLD PR REPORT 2014 31
INVESTMENT:In which of the following areas do you expect to increase your investment this year?
HIGHLOWOPPORTUNITIES &
CHALLENGESGLOBAL INVESTMENT PLANS
Last year, PR firms continued their investment in social media community management (68.9% listed that among their top three growth areas), multimedia content creation (37.1%), and digital build and production (26.2%)—but also in senior counsel (37.0%) and, somewhat surprisingly, media relations (35.1%).
“ Looking ahead, digital is likely to be the area of greatest focus...”
At the other end of the scale, research (7.2%) and professional development were the areas of lowest investment.
Looking ahead, digital is likely to be the area of greatest focus: 52.7% expect to continue spending heavily on social media community management; 40.6% on digital production; and 38.9% on multimedia content.
But there is also a surge of interest in measurement and analytics, which is likely to see the fourth highest investment in 2014, cited as a priority by 31.2%. Add in the number who expect to increase spending on insight and planning (20.1%) and other research (11.4%) and it is clear that data and analytics-related investment is on the increase.
Other priorities for firms around the world include senior counsel (26.5%) and creativity (24.2%).
Interest in expanding social media community management is strongest in the Middle East and Africa (70.4%) and weakest in Latin America (25.0%). Enthusiasm for digital build and production is highest in Eastern Europe (58.0%) and lowest in Western Europe (31.4%). And multimedia content production is a top priority in the UK (54.4%) but barely registers in Australia (9.1%).
Senior counsel is a high priority in Australia (45.5%) and in Latin America (37.5%), while measurement and analytics garners the greatest interest in the most developed markets: the UK (41.3%) and North America (39.8%).
GLOBAL INVESTMENT PLANS
WORLD PR REPORT 201432
OPPORTUNITIES & CHALLENGESGLOBAL INVESTMENT PLANS Continued
0% 10% 20% 30% 40% 50% 60% 70% 80%
0% 10% 20% 30% 40% 50% 60% 70% 80%
SOCIAL MEDIA COMMUNITY MANAGEMENT
MIDDLE EAST
73.7%
LATIN AMERICA
25%
HIGH
LOW
DIGITAL BUILD AND PRODUCTION
EASTERN EUROPE
58%
WESTERN EUROPE
31.4%
HIGH
LOW
2014 2013
NA: NORTH AMERICALAT: LATIN AMERICAUK: UNITED KINGDOMW EU: WESTERN EUROPEE EU: EASTERN EUROPEAUST: AUSTRALIAASIA: ASIAM EA: MIDDLE EASTAFR: AFRICA
43.4%
50.0%
43.5%
31.4%
58.0%
54.5%
52.9%
47.4%
37.5%
47.7%
16.7%
35.6%
25.5%
35.7%
36.4%
34.1%
8.3%
33.3%
61.4%
25%
50%
54.3%
61.8%
62.5%
73.7%
54.5%
75%
57.8%
59.5%
58.3%
66.7%
65.3%
46%
54.5%
44.4%
56.8%
NA
LAT
UK
W EU
E EU
AUST
ASIA
M EA
AFR
PERCENTAGE
NA
LAT
UK
W EU
E EU
AUST
ASIA
M EA
AFR
PERCENTAGE
WORLD PR REPORT 2014 33
50%
38.1%
54.3%
50%
AFRICA
62.5%
AUSTRALIA
9.1%
HIGH
LOW
0% 10% 20% 30% 40% 50% 60% 70% 80%
OPPORTUNITIES & CHALLENGESGLOBAL INVESTMENT PLANS Continued
0% 10% 20% 30% 40% 50% 60% 70% 80%
9.6%
31.3%
21.7%
19%
18%
9.1%
50%
15.8%
37.5%
20.5%
25%
28.9%
22.4%
21.4%
36.4%
31.8%
31.8%
33.3%
10.5%
9.1%
30%
MULTIMEDIA CONTENT CREATION
INSIGHT AND PLANNING
ASIA
50%
AUSTRALIA
9.1%
HIGH
LOW
38.6%
62.5%
58.3%
37.3%
14.3%
16.7%
44.4%
33.7%
27.3%
44.4%
29.5%
2014 2013
NA: NORTH AMERICALAT: LATIN AMERICAUK: UNITED KINGDOMW EU: WESTERN EUROPEE EU: EASTERN EUROPEAUST: AUSTRALIAASIA: ASIAM EA: MIDDLE EASTAFR: AFRICA
NA
LAT
UK
W EU
E EU
AUST
ASIA
M EA
AFR
PERCENTAGE
NA
LAT
UK
W EU
E EU
AUST
ASIA
M EA
AFR
PERCENTAGE
WORLD PR REPORT 201434
12.5%
0% 10% 20% 30% 40% 50% 60% 70% 80%
19.6%
19%
32.4%
25%
15.8%
36.4%
28.6%
33.3%
13.3%
21.4%
22%
9.1%
33.3%
34.1%
25%
OPPORTUNITIES & CHALLENGESGLOBAL INVESTMENT PLANS Continued
0% 10% 20% 30% 40% 50% 60% 70% 80%
PROFESSIONAL DEVELOPMENT
AUSTRALIA
36.4%
LATIN AMERICA
6.3%
HIGH
LOW
CREATIVITY
EASTERN EUROPE
32%
AFRICA
12.5%
HIGH
LOW
2014 2013
NA: NORTH AMERICALAT: LATIN AMERICAUK: UNITED KINGDOMW EU: WESTERN EUROPEE EU: EASTERN EUROPEAUST: AUSTRALIAASIA: ASIAM EA: MIDDLE EASTAFR: AFRICA
24.1%
25%
23.9%
20.0%
32%
27.3%
20.6%
31.6%
33%
16.7%
26.7%
25.5%
21.4%
27.3%
15.9%
16.7%
22.2%
23.9%
6.3%
21.7%
NA
LAT
UK
W EU
E EU
AUST
ASIA
M EA
AFR
PERCENTAGE
NA
LAT
UK
W EU
E EU
AUST
ASIA
M EA
AFR
PERCENTAGE
WORLD PR REPORT 2014 35
0% 10% 20% 30% 40% 50% 60% 70% 80%
OPPORTUNITIES & CHALLENGESGLOBAL INVESTMENT PLANS
2.9%
21%
15.2%
AFRICA
37.5%LATIN AMERICAASIA
9.1%
HIGH
LOW
Continued
0% 10% 20% 30% 40% 50% 60% 70% 80%
13.3%
12.5%
10.9%
8.6%
8%
23.5%
10.5%
25%
15.9%
25%
20%
12.2%
11.9%
18.2%18.2%
20.5%
16.7%
22.2%
31.6%
18%
MEDIA RELATIONS
RESEARCH
AFRICA
25%
EASTERN EUROPE
8%
HIGH
LOW
9.1%
37.5%
14.5%
16.7%
50%
6.7%
23.5%
18.2%
33.3%
13.6%
2014 2013
NA: NORTH AMERICALAT: LATIN AMERICAUK: UNITED KINGDOMW EU: WESTERN EUROPEE EU: EASTERN EUROPEAUST: AUSTRALIAASIA: ASIAM EA: MIDDLE EASTAFR: AFRICA
NA
LAT
UK
W EU
E EU
AUST
ASIA
M EA
AFR
PERCENTAGE
NA
LAT
UK
W EU
E EU
AUST
ASIA
M EA
AFR
PERCENTAGE
WORLD PR REPORT 201436
OPPORTUNITIES & CHALLENGESGLOBAL INVESTMENT PLANS
50%
0% 10% 20% 30% 40% 50% 60% 70% 80%
41.3%
27.6%
26.5%
25%
21.1%
36.4%
14.3%
35.6%
36.7%
28.0%
45.5%
44.4%
31.8%
58.3%
Continued
0% 10% 20% 30% 40% 50% 60% 70% 80%
MEASUREMENT AND ANALYTICS
UNITED KINGDOM
41.3%
MIDDLE EAST
21.1%
HIGH
LOW
SENIOR COUNSEL
AFRICA
50%
MIDDLE EAST
15.8%
HIGH
LOW
2014 2013
NA: NORTH AMERICALAT: LATIN AMERICAUK: UNITED KINGDOMW EU: WESTERN EUROPEE EU: EASTERN EUROPEAUST: AUSTRALIAASIA: ASIAM EA: MIDDLE EASTAFR: AFRICA
24.1%
37.5%
30.4%
26.7%
26%
45.5%
23.5%
15.8%
33%
50%
33.3%
42.9%
33.3%
45.5%
31.8%
41.7%
22.2%
42%
37.5%
39.8%
NA
LAT
UK
W EU
E EU
AUST
ASIA
M EA
AFR
PERCENTAGE
NA
LAT
UK
W EU
E EU
AUST
ASIA
M EA
AFR
PERCENTAGE
WORLD PR REPORT 2014 37
GLOBAL PRACTICE AREA & INDUSTRY SECTOR GROWTH
GROWTH
Increased spending on digital and social media remains by far the most significant driver of public relations agency growth around the world, with 69.5 percent of respondents identifying digital as one of their three top growth drivers (compared to 75.3 percent last year).
“ Technology and consumer products remain the key drivers of growth over the next few years...”
Indeed, digital was top in every region around the world, most notably in the UK, where it was cited by 80.3 percent of respondents.
But perhaps the most interesting development of the year saw a surge in marketing communication (53.6 percent) compared to corporate reputation (45.8 percent). Last year those two areas were seen as almost equal with corporate reputation slightly ahead (49.7 percent, compared to 46.4 percent who cited marketing communications).
Marketing communications was strongest in North America (where it was cited by 60.5 percent of respondents), Eastern Europe (56.0 percent), and Asia (54.6 percent). The only regions in which growth in corporate reputation outpaced marketing were Latin America (47.1 percent compared to 35.3 percent); Western Europe (46.6 percent compared to 39.8 percent); and the Middle East and Africa (48.1 percent compared to 37.0 percent).
Latin America was most bullish on public affairs (41.8 percent), some way ahead of Australia (36.6 percent), while developing markets such as Latin America (23.5 percent) and Africa and the Middle East (22.2 percent) were the biggest growth markets for corporate social responsibility.
Australian firms, meanwhile, saw the by far most significant growth in investor relations and financial communications (27.3 percent), while Western Europe (15.5 percent) and the Middle East and Africa (18.5 percent) are the two regions where employee communication is making a significant contribution to agency growth.
In terms of industry sectors, consumer products and technology were the two clear leaders globally—except in Australia, where healthcare was the biggest source of growth.
The consumer products sector was the number one source of growth in North America (where it was cited by 48.1 percent of respondents); Latin America (56.2 percent); Western Europe (47.6 percent); and Asia (59.4 percent). Technology was the top growth sector in the UK (56.5 percent) and Eastern Europe (52.0 percent). The two sectors tied (57.1 percent each) in the Middle East and Africa. Healthcare was cited by 45.5 percent of firms in Australia.
Agency forecasts, however, indicate a slightly different picture. Technology and consumer products remain the key drivers of growth over the next few years, but 49% of respondents point to healthcare as a source of growth over the next few years, compared to just 34% last year.
WORLD PR REPORT 201438
NEXT FEW YEARS LAST YEARGROWTH
Continued
IN WHICH OF THE FOLLOWING INDUSTRY SECTORS DID YOU SEE/EXPECT THE MOST GROWTH?
IN WHICH OF THE FOLLOWING PRACTICE AREAS DID YOU SEE/EXPECT THE MOST GROWTH?
WORLD PR REPORT 2014 39
GROWTHGLOBAL PRACTICE AREA GROWTH Continued
NEXT FEW YEARS LAST YEAR
NA: NORTH AMERICALAT: LATIN AMERICAUK: UNITED KINGDOMW EU: WESTERN EUROPEE EU: EASTERN EUROPEAUST: AUSTRALIAASIA: ASIAM EA: MIDDLE EASTAFR: AFRICA
0% 10% 20% 30% 40% 50% 60% 70% 80% 100%
42.2%
39.6%
48.5%
44.4%
55.6%
27.3%
56%
33.3%
47.8%
39.8%
49%
45.5%
44.4%
54.6%
35.3%
MARKETING COMMUNICATIONS
NORTH AMERICA
61.9%
AUSTRALIA
27.3%
HIGH
LOW
60.5%
29.4%
61.9%
0% 10% 20% 30% 40% 50% 60% 70% 80% 100%
39.3%
47.1%
44.4%
56.6%
42.9%
45.5%
38.9%
66.7%
34.6%
47.1%
34.8%
46.6%
34%
27.3%36.4%
39.4%
38.9%
66.7%
CORPORATE REPUTATION
AFRICA
66.7%
AUSTRALIA
36.4%
HIGH
LOW
NA
LAT
UK
W EU
E EU
AUST
ASIA
M EA
AFR
PERCENTAGE
NA
LAT
UK
W EU
E EU
AUST
ASIA
M EA
AFR
PERCENTAGE
WORLD PR REPORT 201440
Continued
GROWTHGLOBAL PRACTICE AREA GROWTH
0% 10% 20% 30% 40%
AUSTRALIA
27.3%
UNITED KINGDOM
8.9%
HIGH
LOW
INVESTOR RELATIONS
NEXT FEW YEARS LAST YEAR
NA: NORTH AMERICALAT: LATIN AMERICAUK: UNITED KINGDOMW EU: WESTERN EUROPEE EU: EASTERN EUROPEAUST: AUSTRALIAASIA: ASIAM EA: MIDDLE EASTAFR: AFRICA
8.9%
13.2%
21.2%
22.2%
22.2%
27.3%
12%
16.7%
8.7%
8.7%
18.4%
27.3%
12.1%
11.1%
5.9%
7.4%
17.7%
9.5%
28%
0% 10% 20% 30% 40% 50% 60% 70% 80% 100%
33.3%
PUBLIC AFFAIRS/GOVERNMENT RELATIONS
LATIN AMERICA
52.9%
MIDDLE EAST
22.2%
HIGH
LOW
26.2%
52.9%
24.4%
31.1%
26.5%
27.3%
33.3%
22.2%22.2%
21%
41.2%
19.6%
21.4%
36.4%
30.3%
22.2%
NA
LAT
UK
W EU
E EU
AUST
ASIA
M EA
AFR
PERCENTAGE
NA
LAT
UK
W EU
E EU
AUST
ASIA
M EA
AFR
PERCENTAGE
WORLD PR REPORT 2014 41
GROWTHGLOBAL PRACTICE AREA GROWTH Continued
NEXT FEW YEARS LAST YEAR
NA: NORTH AMERICALAT: LATIN AMERICAUK: UNITED KINGDOMW EU: WESTERN EUROPEE EU: EASTERN EUROPEAUST: AUSTRALIAASIA: ASIAM EA: MIDDLE EASTAFR: AFRICA
5.6%
0% 10% 20% 30% 40%
11.9%
17.7%
24.4%
18.9%
28.6%
15.2%
33.3%
11.1%
11.8%
13%
15.5%
6%
36.4%
9.1%
22.2%
11.1%
EMPLOYEE COMMUNICATIONS
AUSTRALIA
36.4%
MIDDLE EAST
5.6%
HIGH
LOW
NA
LAT
UK
W EU
E EU
AUST
ASIA
M EA
AFR
PERCENTAGE
27.3%21.2%
29.4%
0% 10% 20% 30% 40%
13.3%
26.4%
11.1%
27.8%
18.2%
22%
15.2%
17.5%
18.4%
18.2%
22.2%
22.2%
23.5%
SOCIAL RESPONSIBILITY
LATIN AMERICA
29.4%
AFRICA
11.1%
HIGH
LOW
11.1%14.3%
NA
LAT
UK
W EU
E EU
AUST
ASIA
M EA
AFR
PERCENTAGE
WORLD PR REPORT 201442
GROWTHGLOBAL PRACTICE AREA GROWTH Continued
0% 10% 20%
NORTH AMERICAEASTERN EUROPE
14.3%
AFRICA
0%
HIGH
LOW
WORD OF MOUTH
NEXT FEW YEARS LAST YEAR
NA: NORTH AMERICALAT: LATIN AMERICAUK: UNITED KINGDOMW EU: WESTERN EUROPEE EU: EASTERN EUROPEAUST: AUSTRALIAASIA: ASIAM EA: MIDDLE EASTAFR: AFRICA
6.7%
8.5%
9.1%
11.1%11.1%
9.1%
10%
13%
10.7%
14.3%
9.1%
9.1%
11.8%
17.3%
5.9%
14.3%
80.4%
76%
0% 10% 20% 30% 40% 50% 60% 70% 80% 100%
66.7%
DIGITAL/ONLINE COMMUNICATIONS
NORTH AMERICA
86.9%
AUSTRALIA
54.6%
HIGH
LOW
86.9%
64.7%
80%
70.8%
77.6%
54.6%
81.8%
83.3%61.1%
72.8%
58.8%
66%
72.7%
69.7%
55.6%
NA
LAT
UK
W EU
E EU
AUST
ASIA
M EA
AFR
PERCENTAGE
NA
LAT
UK
W EU
E EU
AUST
ASIA
M EA
AFR
PERCENTAGE
WORLD PR REPORT 2014 43
GROWTHGLOBAL INDUSTRY SECTOR GROWTH Continued
NEXT FEW YEARS LAST YEAR
NA: NORTH AMERICALAT: LATIN AMERICAUK: UNITED KINGDOMW EU: WESTERN EUROPEE EU: EASTERN EUROPEAUST: AUSTRALIAASIA: ASIAM EA: MIDDLE EASTAFR: AFRICA
18.8%29.4%
18.8%
0% 10% 20% 30% 40%
17.4%
24.3%
11.1%
21.1%
22%
28.3%
27.2%
34%
27.8%
22.2%
36.8%
37.5%
FOOD AND BEVERAGE
EASTERN EUROPE
34%
AUSTRALIA
0%
HIGH
LOW
28.6%27.7%
NA
LAT
UK
W EU
E EU
AUST
ASIA
M EA
AFR
PERCENTAGE
42.1%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
48.2%
56.3%
52.2%
47.6%
46%
59.4%
88.9%
54.8%
50%
52.2%
45.6%
58%
36.4%
64.7%
47.4%
88.9%
CONSUMER PRODUCTS
AFRICA
88.9%
AUSTRALIA
36.4%
HIGH
LOW
45.5%
NA
LAT
UK
W EU
E EU
AUST
ASIA
M EA
AFR
PERCENTAGE
WORLD PR REPORT 201444
GROWTHGLOBAL INDUSTRY SECTOR GROWTH Continued
NEXT FEW YEARS LAST YEAR
NA: NORTH AMERICALAT: LATIN AMERICAUK: UNITED KINGDOMW EU: WESTERN EUROPEE EU: EASTERN EUROPEAUST: AUSTRALIAASIA: ASIAM EA: MIDDLE EASTAFR: AFRICA
0% 10% 20% 30% 40% 50% 60% 70% 80%
ASIA
46.9%
AFRICA
22.2%
HIGH
LOW
HEALTHCARE
34.8%
34%
46.9%
31.6%
22.2%
36.8%
22.2%
45.5%
54%
41.3%
45.6%
34%
45.5%
52.9%
25%
56%
31.3%
33.7%NA
LAT
UK
W EU
E EU
AUST
ASIA
M EA
AFR
PERCENTAGE
0% 10% 20% 30% 40%
19.6%
24%
33.3%
INDUSTRIAL/MANUFACTURING
LATIN AMERICA
37.5%
ASIA
15.6%
HIGH
LOW
22.9%
37.5%
19.6%
25.2%
28%
18.8%
15.6%
21.1%21.1%
21.4%
25%
34%
27.3%
20.6%
33.3%
NA
LAT
UK
W EU
E EU
AUST
ASIA
M EA
AFR
PERCENTAGE
WORLD PR REPORT 2014 45
GROWTHGLOBAL INDUSTRY SECTOR GROWTH Continued
NEXT FEW YEARS LAST YEAR
NA: NORTH AMERICALAT: LATIN AMERICAUK: UNITED KINGDOMW EU: WESTERN EUROPEE EU: EASTERN EUROPEAUST: AUSTRALIAASIA: ASIAM EA: MIDDLE EASTAFR: AFRICA
47.4%
0% 10% 20% 30% 40% 50% 60% 70% 80%
57.9%
43.4%
50%
56.5%
46.6%
52%
53.1%
55.7%
53.6%
43.8%
63%
52.4%
60%
36.4%
47.1%
55.7%
TECHNOLOGY
MIDDLE EAST
57.9%
AUSTRALIA
36.4%
HIGH
LOW
45.5%
NA
LAT
UK
W EU
E EU
AUST
ASIA
M EA
AFR
PERCENTAGE
21.9%26.5%
31.3%
0% 10% 20% 30% 40% 60%
21.7%
29.1%
33.3%
42.1%
36%
28.3%
31.1%
32%
36.4%36.4%
55.6%
52.6%
43.8%
FINANCIAL/PROFESSIONAL SERVICES
MIDDLE EAST
42.1%
UNITED KINGDOM
21.7%
HIGH
LOW
39.3%30.1%
NA
LAT
UK
W EU
E EU
AUST
ASIA
M EA
AFR
PERCENTAGE
WORLD PR REPORT 201446
GROWTHGLOBAL INDUSTRY SECTOR GROWTH Continued
NEXT FEW YEARS LAST YEAR
NA: NORTH AMERICALAT: LATIN AMERICAUK: UNITED KINGDOMW EU: WESTERN EUROPEE EU: EASTERN EUROPEAUST: AUSTRALIAASIA: ASIAM EA: MIDDLE EASTAFR: AFRICA
0% 10% 20%
NORTH AMERICA
13.3%
AUSTRALIA
0%
HIGH
LOW
NOT-FOR-PROFIT
4.4%
4.9%
3.1%
5.3%
11.1%
5.3%
11.1%
8.7%
6.8%
6%
5.9%
12.5%
6%
6.3%
13.3%NA
LAT
UK
W EU
E EU
AUST
ASIA
M EA
AFR
PERCENTAGE
8.7%
0% 10% 20% 30% 40% 60%
15.2%
20%
11.1%
PUBLIC SECTOR
LATIN AMERICA
18.8%
MIDDLE EAST
0%
HIGH
LOW
8.4%
18.8%
14.6%
16%
18.2%
15.6%
5.3%
8.3%
31.3%
15.5%
9.1%
20.6%
33.3%
NA
LAT
UK
W EU
E EU
AUST
ASIA
M EA
AFR
PERCENTAGE
WORLD PR REPORT 2014 47
TALENTFOREWORD
“ Part of the challenge in addressing the demand for talent sits with the historic lack of willingness to source talent from outside traditional PR roles...”
FOREWORD
The report very much echoes what Capstone Hill Search experiences across the UK, European, US and Australian markets daily. Improving economies and the surge in overall growth of 11% have necessitated that the primary focus of many agencies be placed on attracting high quality talent, particularly those who reflect the broadening expectations of their clients.
Jamie McLaughlinManaging Director, Capstone Hill Search
Securing talent with specialist skill sets (social, digital, measurement, analytics) is a universal and rapidly growing challenge. Equally specialist sector experience (technology, finance, health etc.) continue to be in significant demand year on year. Though specific sector experience fluctuates per geography, demand for technology expertise is prominent in all regions and we see this sector showing very strong signs of sustained and increasing growth. Part of the challenge in addressing the demand for talent sits with the historic lack of willingness to source talent from outside traditional PR roles, and to a large degree, reticence to hire talent outside of significant comparable agency experience. This creates more of a merry-go-round effect rather than assisting the overall growth of experienced agency talent. This is further exacerbated by a general trend for agencies to look at direct rivals as the best source of talent, rather than perhaps taking a broader view.
This somewhat conservative approach to hiring may have compounded the general shortage of talent. However there are indications that, along with an increasing willingness to invest in external talent search, many are now beginning to their broaden vision. We believe this will assist greatly in the longer term easing of talent shortage and improved breadth of available skills.
A further challenge, despite the strong rate of growth within agencies, is that the industry is still facing a battle to convince many consultants of the career opportunities and benefits agency-side versus the perceived advantages of client-side roles. Capstone Hill Search sees countless examples where the perceived advantages do not actually meet with reality, and it is an ongoing process of education to ensure consultants have a more realistic view of their options. The perceived advantages of client side movement is a significant contributor to the drain on agency talent pool and perhaps an significant opportunity to improve overall retention.
WORLD PR REPORT 201448
Continued
TALENT
With talent identified as the most pressing challenge facing the global PR industry, this year’s World PR Report investigated the area further, asking a number of questions to try and unravel why PR firms struggle to recruit and retain the people that they want and need.
“ Securing talent with specialist skill sets (social, digital, measurement, analytics) is a universal and growing challenge...”
In particular, it appears that agencies are struggling to hire senior (43.6%) and mid-level staff (41.3%). These were two biggest challenges cited when it comes to PR agency talent strategies.
Retaining key talent (33.9%) is another significant issue, ahead of training and development (25.2%). Interestingly, respondents pointed to ‘motivating young executives’ as another area of concern (20.5%), ahead of finding people from non-traditional backgrounds (20.1%) and incentivising senior staff (20.1%).
The majority of public relations agencies (62.5 percent), meanwhile, continue to look to rival firms as a premier source of new talent, and other traditional talent pools continue to be the most popular, with 41.3 percent recruiting from graduate programs, 34.1 percent recruiting from journalism, and 22.2 percent recruiting from in-house PR departments.
By contrast, just 29.7 percent of PR firms are looking to other marketing services disciplines for fresh perspectives, while 22.2 percent are seeking practitioners with a data and analytics background, and 18.8 percent are looking for new people in other professional service firms such as management consultancies or law firms.
“The first instinct of many PR agencies is to cannibalize other firms for talent, which is understandable given the need for experienced professionals,” says Holmes. “But it is encouraging to see others turning to the broader marketing and professional services world, or to data and analytics—the industry desperately needs the new skills these people can bring.”
Interestingly—and a little disturbingly—firms in developed markets were the most likely to look for talent at other agencies: 75.0 percent of firms in North America and 75.6 percent of firms in the UK. Firms in Latin America (31.2 percent) were least likely to see their immediate rivals as a leading source of new talent.
On the other hand, firms in Asia (42.4 percent) and North America (31.2 percent) were most likely to bring in people from other marketing disciplines, while firms in Latin America (31.2 percent) and Asia (30.3 percent) were most likely to consider data and analytics as a rich source of future talent.
Asked what prevented them from sourcing talent from outside the PR industry, most firms (44.2 percent) cited expected salary levels, while 37.1 percent indicated that lack of transferable skills was an obstacle and 25.5 percent complained about a lack of interest from potential recruits.
Agency leaders were less likely to cite their concerns about the investment in retraining (24.5 percent), unwillingness of challenge the status quo (20.1 percent) or recruitment consultants (6.1 percent) as major obstacles.
“The report very much echoes what we experience across the UK, European, US and Australian markets daily,” said Capstone Hill Search managing director Jamie McLaughlin. “Improving economies have shifted the primary focus of many agencies to attracting high quality talent, particularly those who reflect the broadening expectations of their clients.
Securing talent with specialist skill sets (social, digital, measurement, analytics) is a universal and growing challenge. While specific sector experience fluctuates per geography, demand for technology expertise is prominent in all regions.
The historic lack willingness to source talent from outside PR has compounded the general shortage of talent, although along with an increasing willingness to invest in external talent search, many are now beginning to broaden vision which we believe will assist greatly in the longer term easing of talent shortage and improved breadth of available skills.
THE GLOBAL WAR FOR PR TALENT
• Recruitment of senior and mid-level is biggest challenge
• Majority of firms cannibalise talent from competitors
• Salary and skills seen as obstacles to non-traditional talent
WORLD PR REPORT 2014 49
2014
Continued
WHERE ARE YOU LIKELY TO SOURCE TALENT FROM THIS YEAR?
TALENT
WHAT STOPS THE PR INDUSTRY IN YOUR MARKET FROM SOURCING TALENT FROM OUTSIDE THE INDUSTRY?
WORLD PR REPORT 201450
2014
WHAT IS THE BIGGEST CHALLENGE YOU FACE WHEN IT COMES TO YOUR TALENT STRATEGY?
Continued
TALENT
WORLD PR REPORT 2014 51
LOCAL MARKETS
COUNTRY TRADE ASSOCIATION NUMBER OF MEMBER FIRMS
ESTIMATED % OF TOTAL MARKET
IN WHICH OF THE FOLLOWING SECTORS DID YOU SEE MOST GROWTH LAST YEAR?
BIGGEST CHALLENGE AREAS FOR PR FIRMS
BIGGEST PREDICTED AREAS OF GROWTH
AUSTRALIA REGISTERED CONSULTANCIES GROUP (RCG) OF THE PUBLIC RELATIONS INSTITUTE OF AUSTRALIA
119 35% HEALTHCARE; TECHNOLOGY; FINANCIAL AND PROFESSIONAL SERVICES
STAFF RECRUITMENT; COMPETITION FROM OTHER MARKETING DISCIPLINES
MARKETING COMMUNICATIONS; DIGITAL/ONLINE COMMUNICATIONS
AUSTRIA PRVA AND PR QUALITY AUSTRIA
72 90% HEALTHCARE; TECHNOLOGY; FINANCIAL AND PROFESSIONAL SERVICES SERVICES
COMPETITION FROM OTHER MARKETING DISCIPLINES; GENERAL ECONOMIC CONDITIONS; SHORT-TERM CLIENT FOCUS
CORPORATE REPUTATION, SOCIAL RESPONSIBILITY, DIGITAL/ONLINE COMMUNICATIONS
BELGIUM BELGIAN PUBLIC RELATIONS CONSULTANTS ASSOCIATION (BPRCA)
28 70% FOOD AND BEVERAGE FINANCIAL PRESSURE TO MEET PROFIT/MARGIN TARGERS; CLIENTS UNWILLING TO COMMIT SUFFICIENT FUNDS; CLIENTS TOO FOCUSED ON SHORT-TERM
PUBLIC AFFAIRS/GOVERNMENT RELATIONS; DIGITAL/ONLINE COMMUNICATIONS
BRAZIL BRAZILIAN ASSOCIATION OF COMMUNICATIONS AGENCIES (ABRACOM)
251 45% CONSUMER PRODUCTS; TECHNOLOGY; PUBLIC SECTOR
STAFF RETENTION; PR MANAGED AT JUNIOR LEVEL BY CLIENTS; ECONOMIC CONDITIONS GENERALLY
CORPORATE REPUTATION; PUBLIC AFFAIRS/GOVERNMENT RELATIONS; SOCIAL RESPONSIBILITY
BULGARIA BULGARIAN ASSOCIATION OF PR AGENCIES (BAPRA)
17 TECHNOLOGY; FINANCIAL AND PROFESSIONAL SERVICES; PUBLIC SECTOR
ECONOMIC CONDITIONS GENERALLY; CLIENTS TOO FOCUSED ON SHORT-TERM; MEDIA CORRUPTION
MARKETING COMMUNICATIONS; DIGITAL/ONLINE COMMUNICATIONS; WORD-OFMOUTH
CROATIA CROATIAN ASSOCIATION OF COMMUNICATION AGENCIES (HRVATSKA UDRUGA KOMUNIKACIJSKIH AGENCIJA - HUKA)
14 70% FOOD AND BEVERAGE; HEALTHCARE
PROFESSIONAL DEVELOPMENT; GENERAL ECONOMIC CONDITIONS; CLIENTS TOO FOCUSED ON SHORT-TERM
PUBLIC AFFAIRS/GOVERNMENT RELATIONS; INVESTOR RELATIONS/FINANCIAL COMMUNICATIONS; SOCIAL RESPONSIBILITY
CZECH REPUBLIC ASSOCIATION OF PUBLIC RELATIONS AGENCIES (APRA)
20 70% CONSUMER PRODUCTS; HEALTHCARE; FINANCIAL AND PROFESSSIONAL SERVICES
STAFF RECRUITMENT; COMPETITION FROM OTHER PROFESSIONAL SERVICE FIRMS; LACK OF CLIENT UNDERSTANDING OF PR
MARKETING COMMUNICATIONS; WORD-OFMOUTH; DIGITAL/ONLINE COMMUNICATIONS
DENMARK PUBLIC RELATIONS BRANCHEN
28 80% HEALTHCARE, TECHNOLOGY, COMPETITION FROM OTHER MARKETING DISCIPLINES; FINANCIAL PRESSURE TO MEET PROFIT/MARGIN TARGERS; CLIENTS TOO FOCUSED ON SHORT-TERM
MARKETING COMMUNICATIONS; PUBLIC AFFAIRS/GOVERNMENT RELATIONS; DIGITAL/ONLINE COMMUNICATIONS
FINLAND “THE FINNISH ASSOCIATION OF MARKETING COMMUNICATION AGENCIES MTL
30 44% CONSUMER PRODUCTS; HEALTHCARE; TECHNOLOGY
DIGITAL AND NEW TECHNOLOGIES; CLIENTS UNWILLING TO COMMIT SUFFICIENT FUNDS; INABILITY TO EFFECTIVELY MEASURE IMPACT OF PR
MARKETING COMMUNICATIONS; PUBLIC AFFAIRS/GOVERNMENT RELATIONS
FRANCE SYNTEC CONSEIL EN RELATIONS PUBLICS
40 60% CONSUMER PRODUCTS; FOOD AND BEVERAGE; TECHNOLOGY
CLIENTS MOVING PR IN-HOUSE; GENERAL ECONOMIC CONDITIONS; CLIENTS TOO FOCUSED ON SHORT-TERM
CORPORATE REPUTATION; SOCIAL RESPONSIBILITY; INVESTOR RELATIONS/FINANCIAL
GERMANY ASSOCIATION OF PUBLIC RELATIONS AGENCIES (GPRA)
31 40% CONSUMER PRODCTS; HEALTHCARE; TECHNOLOGY
COMPETITION FROM OTHER MARKETING DISCIPLINES; STAFF RECRUITMENT; DIGITAL AND NEW TECHNOLOGIES
CORPORATE REPUTATION; MARKETING COMMUNICATIONS; DIGITAL/ONLINE COMMUNICATIONS
GREECE HELLENIC ASSOCIATION OF COMMUNICATIONS AGENCIES (EDEE)
18 70% FOOD AND BEVERAGE. TECHNOLOGY, FINANCIAL SERVICES
PROFESSIONAL DEVELOPMENT; GENERAL ECONOMIC CONDITIONS; FINANCIAL PRESSURE TO MEET TARGETS
CORPORATE REPUTATION; PUBLIC AFFAIRS/GOVERNMENT RELATIONS; DIGITAL/ONLINE COMMUNICATIONS
WORLD PR REPORT 201452
LOCAL MARKETSContinued
COUNTRY TRADE ASSOCIATION NUMBER OF MEMBER FIRMS
ESTIMATED % OF TOTAL MARKET
IN WHICH OF THE FOLLOWING SECTORS DID YOU SEE MOST GROWTH LAST YEAR?
BIGGEST CHALLENGE AREAS FOR PR FIRMS
BIGGEST PREDICTED AREAS OF GROWTH
INDIA PUBLIC RELATIONS CONSULTANTS ASSOCIATION OF INDIA (PRCAI)
23 75% FOOD AND BEVERAGE; TECHNOLOGY; FINANCIAL AND PROFESSIONAL SERVICES
STAFF RETENTION; GENERAL ECONOMIC CONDITIONS; CLIENTS TOO FOCUSED ON SHORT-TERM
CORPORATE REPUTATION; PUBLIC AFFIARS/GOVERENTMENT RELATIONS; SOCIAL RESPONSIBILITY
IRELAND PUBLIC RELATIONS CONSULTANTS ASSOCIATION (IRELAND)
31 80% CONSUMER PRODUCTS; FOOD AND BEVERAGE; TECHNOLOGY
CLIENTS MOVING PR IN-HOUSE; CLIENTS UNWILLING TO COMMIT SUFFICIENT FUNDS; CLIENTS TOO FOCUSED ON SHORT-TERM
CORPORATE REPUTAATION; SOCIAL RESPONSIBILITY; DIGITAL/ONLINE COMMUNICATIONS
ITALY ASSOREL 43 40% CONSUMER PRODUCTS; FOOD AND BEVERAGE; HEALTHCARE
DIGITAL AND NEW TECHNOLOGIES; COMPETITION FROM OTHER MARKETING DISCIPLINES; COMPETITION FROM OTHER PROFESSIONAL SERVICE FIRMS; ECONOMIC CONDITIONS GENERALLY
CORPORATE REPUTATION; MARKETING RELATIONS; SOCIAL RESPONSIBILITY; DIGITAL/ONLINE COMMUNICATIONS
NETHERLANDS ASSOCIATION OF PUBLIC RELATIONS COUNSELLING FIRMS (VPRA)
55 55% HEALTHCARE, TECHNOLOGY, NOT-FOR-PROFIT
DIGITAL AND NEW TECHNOLOGIES; FINANCIAL PRESSURE TO MEET PROFIT/MARGIN TARGETS; MEDIA CORRUPTION
SOCIAL RESPONSIBILITY; DIGITAL/ONLINE COMMUNICATIONS
NORWAY KOMM 19 80% CONSUMER PRODUCTS; INDUSTRIAL/MANUFACTURING; PUBLIC SECTOR
COMPETITION FOR CLIENTS FROM OTHER PR FIRMS; DIGITAL AND NEW TECHNOLOGIES; MEDIA HOSTILITY TO PR
CORPORATE REPUTATION; DIGITAL/ONLINE COMMUNICATIONS; PUBLIC AFFAIRS/GOVERNMENT RELATIONS
POLAND POLISH PUBLIC RELATIONS CONSULTANCY ASSOCIATION (PPRCA)
40 65% INDUSTRIAL/MANUFACTURING; FINANCIAL AND PROFESSIONAL SERVICES
DIGITAL AND NEW TECHNOLOGIES; COMPETITION FROM OTHER MARKETING DISCIPLINES; CLIENTS UNWILLING TO COMMIT SUFFICIENT FUNDS
SOCIAL RESPONSIBILITY; PUBLIC AFFAIRS/GOVERNMENT RELATIONS; DIGITAL/ONLINE COMMUNICATIONS
PORTUGAL PORTUGUESE ASSOCIATION OF COMMUNICATIONS AND PUBLIC RELATIONS CONSULTANCIES (APECOM)
21 60% FOOD AND BEVERAGE; INDUSTRIAL/MANUFACTURING; HEALTHCARE
COMPETITION FROM OTHER MARKETING DISCIPLINES; FINANCIAL PRESSURE TO MEET PROFIT/MARGIN TARGERS; CLIENTS UNWILLING TO COMMIT SUFFICIENT FUNDS
CORPORATE REPUTATION; MARKETING COMMUNICATIONS; DIGITAL/ONLINE COMMUNICATIONS
RUSSIA THE RUSSIAN COMMUNICATIONS CONSULTANCIES ASSOCIATION (АКОS)
31 60% INDUSTRIAL/MANUFACTURING; TECHNOLOGY; PUBLIC SECTOR
STAFF RECRUITMENT; ECONOMIC CONDITIONS GENERALLY; CLIENTS TOO FOCUSED ON SHORT-TERM
CORPORATE REPUTATION; PUBLIC AFFAIRS/GOVERNMENT RELATIONS; DIGITAL/ONLINE COMMUNICATIONS
SLOVAKIA ASSOCIATION OF PR AGENCIES IN SLOVAK REPUBLIC (APRSR)
12 70% CONSUMER PRODUCTS, FOOD AND BEVERAGE, HEALTHCARE
STAFF RECRUITMENT; PR MANAGED AT JUNIOR LEVEL BY CLIENTS; GENERAL ECONOMIC CONDITIONS
CORPORATE REPUTATION; PUBLIC AFFAIRS/GOVERNMENT RELATIONS; DIGITAL/ONLINE COMMUNICATIONS
SLOVENIA CHAMBER OF PUBLIC RELATIONS ZOJ
9 40% CONSUMER PRODUCTS; TECHNOLOGY; FINANCIAL AND PROFESSIONAL SERVICES
LACK OF CLIENT UNDERSTANDING OF PR; GENERAL ECONOMIC CONDITIONS; CLIENTS TOO FOCUSED ON SHORT-TERM
CORPORATE REPUTATION; SOCIAL RESPONSIBILITY; DIGITAL/ONLINE COMMUNICATIONS
SOUTH AFRICA PUBLIC RELATIONS CONSULTANCY CHAPTER FORMED BY PRISA
43 20% CONSUMER PRODCUTS, HEALTHCARE, TECHNOLOGY
STAFF RECRUITMENT; COMPETITION FROM OTHER MARKETING DISCIPLNIES; GENERAL ECONOMIC CONDITIONS
CORPORATE REPUTATION; EMPLOYEE COMMUNICATIONS; DIGITAL/ONLINE COMMUNICATIONS
WORLD PR REPORT 2014 53
COUNTRY TRADE ASSOCIATION NUMBER OF MEMBER FIRMS
ESTIMATED % OF TOTAL MARKET
IN WHICH OF THE FOLLOWING SECTORS DID YOU SEE MOST GROWTH LAST YEAR?
BIGGEST CHALLENGE AREAS FOR PR FIRMS
BIGGEST PREDICTED AREAS OF GROWTH
SPAIN ASSOCIATION OF PUBLIC RELATIONS AND COMMUNICATIONS CONSULTANCIES (ADECEC)
25 CONSUMER PRODUCTS; INDUSTRIAL/MANUFACTURING; HEALTHCARE
COMPETITION FROM OTHER MARKETING DISCIPLINES; GENERAL ECONOMIC CONDITIONS; CLIENTS TOO FOCUSED ON SHORT-TERM
CORPORATE REPUTATION; PUBLIC AFFAIRS/GOVERNMENT RELATIONS; DIGITAL/ONLINE COMMUNICATIONS
SWEDEN THE ASSOCIATION OF PUBLIC RELATIONS CONSULTANCIES IN SWEDEN, PRECIS
34 75% INDUSTRIAL/MANUFACTURING; FINANCIAL AND PROFESSSIONAL SERVICES; PUBLIC SECTOR
COMPETITION FROM OTHER MARKETING DISCIPLINES; FINANCIAL PRESSURE TO MEET PROFIT/MARGIN TARGERS; CLIENTS UNWILLING TO COMMIT SUFFICIENT FUNDS
CORPORATE REPUTATION; PUBLIC AFFAIRS/GOVERNMENT RELATIONS; MARKETING COMMUNICATIONS
SWITZERLAND ASSOCIATION OF PR AGENCIES IN SWITZERLAND (BPRA)
28 80% HEALTHCARE; FINANCIAL AND PROFESSSIONAL SERVICES; PUBLIC SECTOR
STAFF RECRUITMENT; CLIENTS MOVING PR IN-HOUSE; CLIENTS TOO FOCUSED ON SHORT-TERM
PUBLIC AFFAIRS/GOVERNMENT RELATIONS; DIGITAL/ONLINE COMMUNICATIONS
TURKEY COMMUNICATIONS CONSULTANCY COMPANIES ASSOCIATION - IDA
23 50% FOOD AND BEVERAGE; TECHNOLOGY; FINANCIAL AND PROFESSSIONAL SERVICES,
FINANCIAL PRESSURE TO MEET PROFIT/MARGIN TARGERS; LACK OF CLIENT UNDERSTANDING OF PR; CLIENTS TOO FOCUSED ON SHORT-TERM
CORPORATE REPUTATION; MARKETING COMMUNICATIONS; DIGITAL/ONLINE COMMUNICATIONS
UNITED KINGDOM PUBLIC RELATIONS CONSULTANTS ASSOCIATION (PRCA)
380 75% CONSUMER PRODUCTS; TECHNOLOGY
STAFF RECRUITMENT; COMPETITION FROM OTHER MARKETING DISCIPLINES; CLIENTS UNWILLING TO COMMIT SUFFICIENT FUNDS
MARKETING COMMUNICATIONS; PUBLIC AFFAIRS/GOVERNMENT; DIGITAL/ONLINE COMMUNICATIONS
UNITED STATES COUNCIL OF PUBLIC RELATIONS FIRMS (CPRF)
105 75% CONSUMER PRODUCTS; HEALTHCARE; TECHNOLOGY
STAFF RECRUITMENT; STAFF RETNTION; CLIENTS TOO FOCUSED ON SHORT-TERM
DIGITAL/ONLINE COMMUNCATIONS; MARKETING COMMUNICATIONS; CORPORATE REPUTATION
LOCAL MARKETSContinued
The World Report survey polled more than 500 PR agency heads from around the world via an online survey. In addition, the survey was circulated among ICCO member bodies. Results from these organizations were weighted according to size and combined with the online survey findings to generate the final report. Fieldwork took place in the first half of 2014.
METHODOLOGY
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The Holmes Group271 West 47th StreetSuite 23-ANew York, NY 10036
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